Berry to Acquire Basic Energy Services’ California Business in Bankruptcy Auction

The transaction provides a growth opportunity for the E&P operator to play a larger role in plugging and decommissioning the significant portfolio of orphan and idle wells in California, estimated to be a $6 billion market, says Berry CEO Trem Smith.

Berry to Acquire Basic Energy Services’ California Business in Bankruptcy Auction

Basic Energy Services separately said it had also entered into asset purchase agreements with each of Axis Energy Services Holdings LLC and Select Energy Services Inc. for the sale of its remaining assets. (Source: Basic Energy Services)

Berry Corp. launched a bid to acquire substantially all the assets comprising the California business lines of Basic Energy Services, a Fort Worth, Texas-based oilfield service company which voluntarily filed for Chapter 11 bankruptcy on Aug. 17.

The transaction, according to Berry Chairman and CEO Trem Smith, provides a growth opportunity for the E&P operator to play a larger role in plugging and decommissioning the significant portfolio of orphan and idle wells in California, estimated to be a $6 billion market, according to the release from the Dallas-based company.

“This is a unique opportunity to expand our role in California’s energy transition while growing bry’s business in a way that enhances our current operations and contributes a diversified revenue stream,” Smith commented in the release on Aug. 17.

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Emily Patsy

Emily Patsy is the senior managing editor for Hart Energy’s Digital News Group. She's responsible for the daily news flow and also manages the A&D Watch and Energy Pulse weekly newsletters.