Private U.S. oil and gas producer Hannathon Petroleum LLC has retained an investment bank to sell around 18,000 net acres in the Northern Midland basin of Texas, according to marketing documents seen by Reuters.

U.S. oil producer Hannathon looks to sell Texas land - documents- oil and gas 360

Source: Reuters

The assets could be valued at around $500 million in a sale, a source familiar with the matter said. The source requested anonymity as the sale plan is confidential.

Shale operators have leaned heavily on dealmaking in recent months as a strong rebound in oil and gas prices has given companies a window to sell assets at attractive prices. The global crude oil benchmark on Monday traded at over $91 a barrel, up 62% from a year earlier.

Founded in 2007, Hannathon describes itself as one of the largest remaining private companies in the Midland portion of the Permian basin, which is the biggest U.S. oilfield and the focus of consolidation in recent months.

Hannathon has retained investment bank Jefferies for the sale of its assets, which currently produce around 5,800 barrels of oil and gas per day, according to the documents.

The company is planning to open a “virtual data room” to interested parties next week and is expecting bids by March 23, the documents showed.

Hannathon did not respond to a request for comment.

Legal Notice