Tuesday, October 1st, 2013 and is filed under Oil and Gas Current Events, Texas Oil and Gas Investing
Royal Dutch Shell RDSB.LN -0.87% PLC plans to sell its stake in the Eagle Ford Shale in South Texas, following a $2 billion write-down of North American assets that the company announced in August.
Shell’s sale of leases on 106,000 acres in the oil-and-gas-rich region illustrates the struggles major oil companies have had in places where smaller energy firms have thrived.
Shell said the Eagle Ford holdings didn’t meet the company’s targets for size and profitability.
The stake “offers a valuable growth opportunity for another experienced operator,” said Shell spokeswoman Kelly op de Weegh. The company will continue to operate its 150 production wells in the shale while allowing potential buyers to review technical data on the holdings. The possible value of the assets wasn’t clear.
Read more on the Wall Street Journal
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