US oil and gas company Percussion Petroleum II is seeking buyers for its 25,000 net acres in the Permian shale basin to raise up to $1.5 billion, reported Reutersciting three sources.
The move comes as the company intends to capitalize on soaring global crude oil prices.
Under the proposed plan, Percussion is working with an undisclosed adviser for the potential sale of the assets that are part of the Delaware formation in the United States, the sources said.
In 2021, Percussion purchased the bulk of its oil and gas assets in the Permian shale basin, which is one of the most prolific crude producing areas in the United States, from Oasis Petroleum for $375 million, plus conditional payments.
According to a marketing document seen by Reuters, Percussion has production capacity of around 21,000 barrels of oil equivalent per day (boepd) from more than 375 well sites, as of June 2022.
By the end of this year, the company hopes to increase production from the assets to 33,000 boepd.
The Permian Basin, which spans Texas and New Mexico, is estimated to have record production of 5.316 million barrels per day in July 2022.
Percussion was founded in 2020 with investment from private equity firm Carnelian Energy Capital.
Last month, Centennial Resource Development and Colgate Energy Partners III agreed to merge their businesses to create a $7 billion Permian-focused oil and gas producer.
The combined entity will focus on the Delaware Basin assets in the Western Shale field.
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