BlackBrush Oil & Gas Explores South Texas Asset Sale: Sources

The baseline valuation of BlackBrush's production in the Eagle Ford would be around $430 million, although BlackBrush may seek a sale price in the “high hundreds of millions of dollars” to account for substantial undeveloped acreage in the area, sources said.

David French and Shariq Khan, Reuters

BlackBrush Oil and Gas has placed some of its assets in South Texas for sale, seizing on a surge in energy prices, people familiar with the matter said.

The San Antonio, Texas-based company, in which Bain Capital Specialty Finance is a major owner, has hired an investment bank to run an auction for more than 30,000 net acres (12,140 hectares) in the Eagle Ford Shale, which produce around 11,800 boe/d.

The baseline valuation of the asset's production would be around $430 million, although BlackBrush may seek a sale price in the “high hundreds of millions of dollars” to account for substantial undeveloped acreage in the area, the sources said on June 29.

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