There were 367 transactions in the North American Oil & Gas sector in Q1 2018, including 102 private placements, 100 public offerings, 114 mergers & acquisitions, 19 buybacks and 32 shelf registrations, with a total value of C$153 billion. Total deal volume decreased by 21% over Q1 2017 and transaction value decreased by 36%.
Our client, an oil and gas company, is seeking an acquirer for its business, which includes the holding of mineral leases covering 5,860 acres in the Santa Maria Valley, California. The property has been an active producer since the 1950s and hosts a proven recoverable oil reserve of 10.367 million barrels.
The Permian Basin was producing under 1.5 million barrels per day in 2013 and is now expected to reach 2.5 million bpd in 2017. Private equity investment in the region has also grown, with roughly $28 billion in PE deals announced in 2016 alone.