Legacy Reserves is reportedly planning to divest its oil and gas assets in the Permian and Haynesville basins in the US.

According to a Reuters report, the company has already appointed an investment bank to run the assets sale process.

At current commodity prices, the assets are valued at approximately $800m, the news agency added, citing sources familiar with the development.

As per Legacy’s estimates, production from the shale assets in the Permian basin would total an estimated 11,000 barrels of oil equivalent per day (boepd) in January 2022.

The company’s assets in Haynesville are estimated to produce approximately 108 million cubic feet of natural gas equivalent per day in January.

Legacy went private after emerging from bankruptcy in 2019, and currently operate as an independent energy company.

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By GlobalData

Legacy Reserves’ operations are focused on the development of unconventional plays in the Permian basin, as well as the management of shallow-decline oil and natural gas wells in the Permian basin, East Texas, Rocky Mountain and Mid-Continent regions.

In 2020, the company reported a total production of 38,200 boepd.

The report came as the rebound in oil prices increased consolidations in the sector, particularly in the Permian basin.

Last month, EnCap Investments merged two of its portfolio companies to create one of the largest privately-owned oil producers in the Delaware basin, a part of the larger Permian basin.

The combined firm, which has a value of more than $4bn including debt, is currently operating eight rigs.

EnCap may list the new company this year, depending on marketing conditions.