Bankrupt Permian operator Approach Resources appears to be headed toward a sale again—albeit for less than two-thirds of the original sales price.
Shale operators have plans to restart production. But with OPEC seemingly satisfied with $40 oil prices, U.S. producers are facing the prospect of becoming ‘zombie companies’—all dressed up but with nowhere to drill.
The Oklahoma City-based oil and gas company, which suffered a brutal bankruptcy in 2016, said the deal will keep the specter of Chapter 11 at bay.
With historic drops in oil price, mass layoffs and the likelihood of prolonged recovery, some wonder how the industry will regroup as demand recovers.
The remainder of the year’s deals will likely involve gas assets (while prices are good) and could come to include the low cost supply areas in the Texas and Louisiana Haynesville. Barring a miraculous rally, oil looks likely to remain the New Coke of commodities.
Terrence M. Pegula joins other NFL owners, most notably Dallas Cowboys owner Jerry Jones, in making large new investments during a stagnant time for the oil and gas industry.
Tokyo Gas will pay about $620 million as it increases its ownership in Castleton Resources, a U.S. shale gas operator focused on being a consolidator of E&P assets in the Ark-La-Tex region.
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