Percussion floats $1.5bn Permian shale sale: press
Percussion Petroleum II is seeking to raise $1.5bn by selling 25,000 net acres of Permian shale acreage, Reuters reported June 17.
The Houston-based E&P investment unit, which focuses on mature, conventional Delaware strata production, is looking to capitalise on the sharp uptick in crude and natural gas prices.
Traders were selling crude oil futures around 50% lower than their current $109/barrel price mark when Percussion bought most of its portfolio in 2021, in a deal worth $375mn plus contingent payments with Oasis Petroleum.
This month, Percussion's group output is averaging around 21,000 barrels of oil equivalent/day, from more than 375 upstream assets, according to a marketing document seen by Reuters. The document forecasts production to rise to 33,000 boe/d before year-end. An adviser has been hired to guide Percussion through the sale, though talks remain confidential and only corroborated by Reuters' sources.
Percussion Petroleum II launched March 2020 with an anchor investment from energy-led investment firm Carnelian Energy Capital. Private equity firm Old Ironsides Energy has also invested in the company. The sale is latest Permian Basin M&A deal in recent months. Harold Hamm's offer to bring Continental Resources private for more than $25bn has made the headlines, as has a $7bn merger announced May between Centennial Resource Development and Colgate Energy Partners.