US-based Caerus Oil and Gas is considering a sale that could value it at more than $2.5bn, including debt, Reuters has reported, citing people familiar with the matter.
The private equity-owned natural gas producer, which received an acquisition offer in late 2021, is planning to begin the sale process in the next few weeks.
The sources, however, said there is no certainty that the sale would be materialised.
Caerus Oil and Gas, which holds exploration and production assets, pipelines, and mineral rights, is owned by Anschutz Investment, Oaktree Capital Management, and Old Ironsides Energy.
Caerus Oil and Gas currently owns nearly 680,000 net acres of leasehold within the Piceance and Uinta basins. It also owns an additional 36,000 net mineral fee acres, as well as 10,000 net royalty interest acres.
The company operates more than 7,400 producing wells and a significant undeveloped acreage with more than 5,300 future drilling locations.
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The firm’s 1P reserves stand at nearly 2.5 trillion cubic feet equivalent (Tcfe) of natural gas, and a daily production rate of nearly 600 million cubic feet.
The company’s other assets include 3,862km-long gas and water gathering and distribution pipelines, and 3.5 million barrels of water storage capacity.
It also owns six water treatment facilities and 12 water storage facilities.
In 2020, Caerus Oil and Gas acquired the Uinta basin natural gas assets of Occidental Petroleum, in Utah.