US-based Red Willow Offshore is reportedly considering selling its non-operated stakes in six oilfields, in the Gulf of Mexico.
Two people familiar with the matter told Reuters that the oil and gas producer is marketing its interest in the six assets. The potential deal may be worth more than $130m.
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As part of the plan, Red Willow Offshore has engaged investment bank Evercore to advise on the potential deal.
The six fields have an estimated production capacity of 3,500 barrels of oil and gas per day.
Red Willow Offshore, which was formed by the Southern Ute Indian Tribe of Colorado, valued the properties considered for divestment at $137m. This is based on current oil prices, reported the news agency, citing a marketing document dated this month.
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Red Willow expects bids for the assets in late March 2022. A potential sale may become effective on 1 April.
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By GlobalDataRed Willow is a unit of Red Willow Production, which holds oil and gas assets in the Gulf of Mexico, the Delaware basin in West Texas, and the Jonah Field in the Green River basin, Wyoming.
Last year, LLOG Exploration and its partners, including Red Willow Offshore, started production from the Praline field, a discovery in Mississippi Canyon block 74, in the Gulf of Mexico.
LLOG operates the field with a 27.25% stake. Other partners in the field are the Ridgewood Energy-managed entities including ILX Holdings, Red Willow Offshore, Houston Energy, and CL&F Offshore.
Earlier this month, the US federal court announced that it had revoked the DOI’s Gulf of Mexico oil and gas lease sale.
