(Adds overseas interest, details on customers, partner
companies, byline, background)
By Ernest Scheyder
NEW YORK, July 2 Breitling Oil & Gas, which
manages oil and natural gas deposits in North Dakota and
Oklahoma, is considering an initial public offering or other
options for late 2013 or early 2014.
The Dallas-based company would hope to raise $200 million to
$400 million through any IPO, Chris Faulkner, Breitling's chief
executive, said in an interview.
A debt offering or entire sale of the company is also
possible, he said.
Faulkner has traveled to Asia several times this year, and
said interest in buying Breitling was strong across the
But Faulkner added: "I think there's a lot more upside
potential for us that we couldn't monetize if we sold the
business right now."
Breitling is controlled by its employees and other insiders.
"We'd probably look at some kind of equity (offering) rather
than a complete divestiture," Faulkner said.
The company controls roughly 200,000 acres of mineral rights
across North Dakota's Bakken and Three Forks shale fields, as
well as in Oklahoma's Mississippian Lime shale field.
Breitling typically hires Devon Energy Corp, Oasis
Petroleum Inc or others to produce oil and natural gas
on the land, preferring to be a non-operating partner.
The company specializes in using two- and three-dimensional
seismic readings to evaluate land with large oil and natural gas
deposits, to improve efficiency.
Typically, only about 5 percent to 10 percent of available
crude oil in a well is recoverable, but the technology could
boost that amount.
Much of the oil or natural gas produced on Breitling's land
is sold to Royal Dutch Shell Plc, BP plc, Exxon
Mobil Corp or others, Faulkner said.
Breitling has not filed any paperwork with the U.S.
Securities and Exchange Commission, indicating interest in an
"We're capitalized now and aren't in any hurry," Faulkner
said. "We'll make some decisions later in 2013 and might pull
the trigger in 2014."
UBS, Brean Capital LLC and Zions Bancorp's
Amegy Bank, a midsized Texas bank, are advising
(Reporting by Ernest Scheyder; Editing by Gerald E. McCormick
and Jeffrey Benkoer)