Privately owned oil driller Recoil Resources is scouting for a buyer for its assets spread across 71,000 acres in the Eagle Ford shale play of South Texas, according to two sources familiar with the matter.
The assets, expected to produce around 4,000 boe/d in July per Recoil’s marketing materials seen by Reuters, could fetch over $200 million in a sale, one of the sources said.
A sale could be finalized over the coming months, one of the sources said, requesting anonymity as the talks are confidential.
Recoil did not immediately respond to a Reuters request for comment.
Backers of private oil producers across North America have been looking to capitalize on a recent run-up in crude prices, buoyed by economies reopening as vaccinations gather pace. U.S. crude was trading around $74/bbl on June 30, up 51% from the end of last year.
In the Eagle Ford region, which neighbors the prolific Permian Basin, multiple companies are currently pursuing divestitures, according to multiple people involved in the bidding processes.
“We haven’t seen a ton of announced EF (Eagle Ford) deals yet but expect to see activity pick up given the number of processes being run in the play,” said Andrew Dittmar, senior M&A analyst at Enverus.
“As one of the most developed shale plays with substantial existing production, the EF stands to particularly benefit from rising commodity prices both for oil and gas production.”
EP Energy, another Eagle Ford focused driller, has attracted interest from multiple private equity firms for its assets in the region, Reuters reported earlier this month.
Recommended Reading
ADNOC Contracts Flowserve to Supply Tech for CCS, EOR Project
2025-01-14 - Abu Dhabi National Oil Co. has contracted Flowserve Corp. for the supply of dry gas seal systems for EOR and a carbon capture project at its Habshan facility in the Middle East.
Enchanted Rock’s Microgrids Pull Double Duty with Both Backup, Grid Support
2025-02-21 - Enchanted Rock’s natural gas-fired generators can start up with just a few seconds of notice to easily provide support for a stressed ERCOT grid.
McDermott Completes Project for Shell Offshore in Gulf of Mexico
2025-03-05 - McDermott installed about 40 miles of pipelines and connections to Shell’s Whale platform.
Equinor’s Norwegian Troll Gas Field Breaks Production Record
2025-01-06 - Equinor says its 2024 North Sea production hit a new high thanks to equipment upgrades and little downtime.
Delivering Dividends Through Digital Technology
2024-12-30 - Increasing automation is creating a step change across the oil and gas life cycle.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.