Privately owned oil and gas producers Bighorn Permian Resources and Admiral Permian Resources are looking to sell assets spread across the biggest U.S. shale region in Texas and New Mexico, according to marketing documents seen by Reuters.

The proposed land sales from Bighorn and Admiral come as oil and gas producers capitalize on a surge in crude prices built on recovering global fuel demand. There has been a wave of land sales this year in the Permian, the largest U.S. shale region, where production has nearly returned to pre-pandemic levels while other U.S. regions struggle.

ConocoPhillips said it would spend $9.5 billion on European major Royal Dutch Shell's assets last month.

Bighorn, which emerged from bankruptcy in February this year, estimates its assets in the Midland portion of the Permian are worth around $1.3 billion at current commodity prices. Admiral estimates its acreage in the Delaware portion of the basin is worth around $517 million, according to the sale documents.

U.S. crude oil was trading above $82/bbl on Oct. 29, having risen sharply this year as travel restrictions ease and on supply constraints in Europe.

The surge follows a years-long slump in fuel prices exacerbated by the coronavirus pandemic last year, which pushed many shale producers into bankruptcy.

Bighorn, previously known as Sable Permian Resources, filed for bankruptcy in June 2020 after having narrowly avoiding such a filing in the previous year. The company was producing about 40,000 boe/d as of October, according to its sale document.

Meanwhile, Admiral Permian, backed by buyout firm Ares Management Corp, is looking to sell assets estimated to produce around 17,500 boe/d in November. That output is expected to rise to about 24,000 boe/d by January through six drilled-but-uncompleted wells, according to its sale document.

Admiral did not immediately respond to a Reuters request for comment. No website contact could be found for Bighorn and phone numbers listed for its predecessor company did not connect. Bighorn's financial adviser did not immediately respond to a request for comment.

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