Page 9 - NorthAmOil Week 07 2022

NorthAmOil PROJECTS & COMPANIES NorthAmOil

Colgate reportedly considering

sale or merger

PERMIAN BASIN PRIVATE equity-backed Colgate Energy is IPO of a US oil producer since 2018.
reportedly considering a sale. The Permian Basin The company is exploring options includ-
producer has been preparing to go public, but ing an IPO and a sale at a time when numerous
Bloomberg cited sources familiar with the mat- private equity-backed companies are taking
ter as saying it would now also explore a sale after advantage of higher oil and gas prices to exit the
receiving takeover interest. industry. Public companies, meanwhile, are tak-
According to one of the sources, Colgate ing advantage of this trend and acquiring other
could fetch up to $5bn in a sale. The source producers – often private equity-backed ones –
added that the company could either agree to be in an effort to boost cash flow and build scale in
acquired by a larger rival or opt for a merger of their core regions of operation. The wave of con-
equals with another Permian operator. Colgate solidation that swept the industry since the sec-
and its backers – Pearl Energy Investments and ond half of 2020 appears to be slowing now, but
NGP Energy Capital – are now working with analysts believe there could still be more major
advisers to evaluate both a sale and an initial deals to come.
public offering (IPO), according to Bloomberg’s Colgate operates across 101,000 net acres
sources. (409 square km) in the Permian Basin’s Delaware
News that Colgate was considering an IPO sub-basin and produces roughly 58,000 barrels
emerged in December, and it was reported that it of oil equivalent per day (boepd). It bolstered its
would be valued at around $4bn including debt. position last year with acquisitions of assets from
If an IPO goes ahead, it would be the first major Occidental Petroleum and Luxe Energy.™

ConocoPhillips supplies

Bakken gas to bitcoin miner

NORTH DAKOTA US independent ConocoPhillips is supplying operations close to shale wells in a bid to capture
natural gas from North Dakota’s Bakken play to their unwanted gas output. However, the news
a bitcoin mining project, it emerged this week. service said it was not known whether either
The move represents an effort to find a use for of these companies is involved with this Cono-
associated gas output that would otherwise be coPhillips project.
flared, and marks a first for a major US oil and A JAI founding partner, Ryan Leachman, has
gas producer. previously said he expects every oil and gas com-
ConocoPhillips confirmed that it was sup- pany to have some exposure to bitcoin mining
plying gas to a bitcoin mining pilot project in an within 5-10 years. Given that ConocoPhillips
emailed statement to various media outlets this is an early mover in this space, it would likely
week. It did not name the cryptocurrency miner take considerably longer for such projects to
involved. roll out on an industry-wide basis. However,
“ConocoPhillips has one bitcoin pilot project North Dakota’s cryptocurrency industry is set
currently operating in the Bakken, where gas to grow, with plans for a $1.9bn cryptocurrency
that would otherwise have been flared is routed mining data centre unveiled in January. This
to a bitcoin processor owned and managed by a development could help spur further partner-
third party,” a ConocoPhillips spokesperson told ships between shale drillers and cryptocurrency
cryptocurrency news outlet CoinDesk. miners.
The idea of reducing flaring by using asso- ConocoPhillips is among the founding mem-
ciated gas production to power bitcoin mining bers of the OOC Oil & Gas Blockchain Con-
is not new, but appears to be gaining traction sortium, which comprises a group of energy
as North Dakota explores way to address asso- companies seeking to establish “key blockchain
ciated gas output and bring down flaring rates. standards, frameworks and capabilities” within
According to CoinDesk, bitcoin miners includ- the industry. It is also committed to eliminating
ing Crusoe Energy and JAI Energy are setting up routine flaring at its operations by 2025.™

Week 07 17•February•2022 www. NEWSBASE .com P9