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Commodities trader Gunvor is in early-stage talks to acquire natural gas-producing assets from private energy firm Silver Hill Energy Partners in the Haynesville shale basin, with a purchase price between $1.2 billion and $1.5 billion under consideration, according to four sources who spoke to Reuters.
The deal is far from done: the sources cautioned that talks remain at an early stage and a transaction is not guaranteed, which is the qualifier that makes the headline figure worth parsing carefully.
The case for the deal is geographic and structural.
Silver Hill holds around 58,000 net acres across East Texas and Louisiana, with net estimated production of about 370 million cubic feet equivalent per day, according to estimates from energy consultancy Rystad.
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