Current oil and gas market conditions have caused an unprecedented number of E&P bankruptcy filings. However, these troublesome times also create an A&D opportunity for those prepared, said a group of lawyers.

Although the current downturn presents new concepts and conditions that might make the acquisition process more challenging than in previous cycles, the lawyers, who spoke during a recent Summer NAPE roundtable discussion, expect E&P companies to continue to shed oil and gas assets out of bankruptcy, ultimately setting up a favorable landscape for stalking-horse bidders.

“If you are the stalking horse it gives you a leg up, allowing you to control the contours of what goes into the asset purchase agreement,” said Sarah Schultz, partner at Akin Gump Strauss Hauer & Feld LLP.

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