Tellurian closes acquisition of Haynesville Basin

U.S. LNG project developer Tellurian has closed the acquisition of certain assets in the Haynesville Basin from privately held EnSight IV Energy Partners and EnSight Haynesville Partners.

Tellurian is developing a portfolio of natural gas production, LNG marketing and trading, and infrastructure that includes Driftwood LNG, the 27.6 million tonnes per annum LNG export facility, and an associated pipeline. In March, Tellurian issued a limited notice to proceed to Bechtel Energy to begin the construction. The first LNG from the facility is expected in 2026.

The cash consideration at theclosing of the acquisition was $125.5 million. This is revised from the announced $125 million due to preliminary purchase price adjustments. The consideration was funded with cash on hand.

With the closing of the EnSight acquisition, Tellurian’s wholly owned subsidiary Tellurian Production (TPC) has current production of approximately 150 million cubic feet/day (MMcfd) from assets in the Haynesville basin.

In addition, TPC operates 11 wells currently being drilled or completed, all of which TPC expects to turn to sales before the end of the year. These new wells are expected to increase TPC’s production rate to approximately 250 MMcfd.

Tellurian CEO Octávio Simões said, “This closing represents significant progress for Tellurian and our business model. By owning and operating upstream assets, a pipeline network, and the Driftwood LNG terminal, Tellurian will have the ability to sell natural gas into domestic or international markets.”

John Howie, President of TPC, added: “The EnSight acquisition is an excellent strategic and operational fit for Tellurian. The combination of our existing assets with this acquisition results in an acreage position of more than 20,000 acres and an inventory of more than 275 high return, de-risked drilling locations, most of which we can drill opportunistically for incremental free cash flow.”