2 minutes, by Read (Source: Reuters) According to two persons familiar with the situation, privately held oil driller Recoil Resources is looking for a buyer for its assets scattered across 71,000 acres in South Texas’ Eagle Ford shale basin. According to Recoil’s marketing brochures reviewed by Reuters, the assets are expected to produce roughly 4,000 barrels of oil equivalent per day in July and may fetch over $200 million in a sale, one of the sources said. One of the individuals, who asked to remain anonymous because the conversations are private, said a deal might be completed in the coming months. Recoil did not respond to a request for comment from Reuters right away. Private oil producers’ supporters across North America have been hoping to profit from a recent rise in petroleum prices, which has been boosted by economies reopening as vaccines take hold. On Wednesday, US crude was trading at over $74 per barrel, up 51% from the end of last year. According to various persons involved in the bidding processes, multiple corporations are presently pursuing divestitures in the Eagle Ford region, which borders the booming Permian shale field. “We haven’t seen a lot of announced EF (Eagle Ford) deals yet, but given the number of processes being run in the play, we anticipate to see activity increase up,” said Andrew Dittmar, senior M&A analyst at Enverus. “As one of the most established shale plays with significant existing production, the EF stands to benefit disproportionately from increased commodity prices in both oil and gas output.” According to Reuters, EP Energy, another Eagle Ford focused driller, has received interest from numerous private equity groups buying its holdings in the region. Shariq Khan and Jessica Resnick-Ault contributed reporting, while Sriraj Kalluvila edited the piece./n
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