Tellurian to buy Haynesville shale assets
Tellurian, the US company developing the 26-mtpa Driftwood LNG export facility, has entered into a deal to buy a package of natural gas assets in the Haynesville shale play in northern Louisiana.
A wholly-owned unit of Tellurian signed the deal worth $85.1 million with an unnamed private seller.
The assets are located in Red River, DeSoto and Natchitoches Parishes, and include 9,200 net acres with up to 138 operated Haynesville and Bossier drilling location and about 1.3 trillion cubic feet (Tcf) of total natural gas resource potential.
The deal also includes 19 producing operated wells with net current production of four million cubic feet per day and associated natural gas gathering and processing facilities with substantial additional capacity, according to a Tellurian statement.
The assets are 100% held by production and 92% operated, allowing Tellurian to control the pace of development for its multi-year drilling inventory.
Covering more than five million acres, the Haynesville shale is one of the most prolific resource plays in the United States with over 13 Tcf of historical production, more than 44 active drilling rigs, access to multiple pipelines and close proximity to Gulf Coast consumers and exporters.
“Acquisition of natural gas producing assets is integral to our growing business. We expect our full cycle cost of production and transport to markets will be approximately $2.25 per MMBtu, which represents a significant savings to natural gas we will purchase at Henry Hub and other regional liquidity points,” said Chief Executive Meg Gentle.
The transaction is expected to close by the end of November 2017 subject to customary closing conditions.