Red Willow Offshore offering stakes in six U.S. Gulf of Mexico oilfields - sources - Reuters - 2 minutes read




Jan 28 (Reuters) - Red Willow Offshore LLC, a closely-held U.S. oil and gas producer, is marketing its interest in six non-operated U.S. Gulf of Mexico oilfields that it has valued at over $130 million, two people familiar with the matter told Reuters on Friday.

Energy dealmaking among smaller oil and gas producers has jumped as a strong rebound in oil and gas prices has encouraged companies to combine to gain economies of scale. The global crude oil benchmark on Friday traded at over $91 a barrel, up 62% from a year ago. read more

Red Willow Offshore, formed by the Southern Ute Indian Tribe of Colorado, has retained investment bank Evercore to advise it, the people said. Its six fields will produce about 3,500 barrels of oil and gas per day.

Red Willow Production and Evercore did not respond to requests for comment.

The company valued the properties at $137 million based on current oil prices. ids are anticipated in late March with any potential sale effective as of April 1, according to a marketing document dated this month and seen by Reuters.

Red Willow's parent company Red Willow Production owns oil and gas producing assets in the San Juan Basin of Colorado and New Mexico, the Delaware Basin of West Texas and the Green River Basin of Wyoming, according to its website.

Source: Reuters

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