Tug Hill Operating and private equity firm Quantum Energy Partners are considering the sale of upstream company THQ Appalachia I, reported Reuters, citing people familiar with the matter.

Backed by Tug Hill and Quantum Energy, THQ Appalachia I operates in the Marcellus, Utica, and Upper Devonian plays in the US.

A potential sale could value the US-based natural gas producer at more than $5bn, including debt. This could be because of the potential value of the firm’s undeveloped acreage and the cost of its existing production, the sources said.

An undisclosed investment bank has been appointed for the sale process that started earlier this month.

Potential bidders will have the option to purchase XcL Midstream, a pipeline firm that transports gas from THQ Appalachia’s assets to market.

If a buyer decides to acquire XcL Midstream, then the deal consideration will increase further, said the sources.

The sale, however, is subject to market conditions. There is also no certainty that a sale deal will be signed with a potential firm as Tug Hill and Quantum could retain some or all of assets of THQ Appalachia and XcL.

THQ Appalachia, which has a net production capacity of approximately 760 million cubic feet per day, has a leasehold position in the Marshall and Wetzel counties in West Virginia.