Tellurian boosts upstream footprint with $125 million Haynesville buy

US LNG firm Tellurian, the developer of the Driftwood LNG export facility in Louisiana, has purchased natural gas assets in the Haynesville Shale, as part of plans to boost its upstream position.

In that regard, Tellurian Production (TPC), a unit of Tellurian, entered into an agreement to purchase natural gas assets from privately held EnSight IV Energy Partners and EnSight Haynesville Partners.

According to a Tellurian statement on Wednesday, the purchase price is $125 million, subject to customary closing adjustments, and a contingent payment of $7.5 million which is based on the price of natural gas and may be payable in March 2023 under certain conditions.

Also, Tellurian said it would fund the purchase with cash on hand and expects closing on the EnSight assets in the third quarter of 2022.

The effective date of the transaction is August 1, 2022.

Progressing Driftwood LNG and boosting upstream footprint

Tellurian said the assets currently have a net production of about 45 million cubic feet of natural gas per day (MMcf/d).

About 5,000 net acres are located in the core of the Haynesville Shale in DeSoto, Bossier, Caddo, and Webster Parishes, Louisiana.

Moreover, the assets include 44 producing wells and five wells in progress at transaction close.

EnSight is currently operating a one-rig drilling program, which Tellurian plans to maintain on the acquired assets through the fourth quarter of 2022.

Tellurian president and CEO Octavio Simoes said in the statement the company “continues to focus on two critical pathways – progressing Driftwood LNG and continuing to increase our upstream footprint.”

“This transaction grows our 2023 estimated natural gas production by about 30 percent, increases upstream asset-level Ebitda by about 25 percent, and expands upon our existing platform,” he said.

Most Popular

Technip Energies wins contract for Eni’s Coral Norte FLNG

France-based LNG engineering giant Technip Energies has won a contract for preliminary work on Eni's second FLNG project in Mozambique, Coral Norte (Coral North).

Victrol: LNG London hits bunkering milestone

The Shell-chartered inland bunkering vessel LNG London, owned by a joint venture of Belgium's Victrol and France's Sogestran, has reached a new operational milestone.

Atlantic LNG shipping rates dip, European prices up

Atlantic spot LNG shipping rates decreased this week, marking the largest week-on-week decline since January.

More News Like This

Woodside, Stonepeak wrap up Louisiana LNG stake sale

Australian LNG player Woodside has completed the previously announced sell-down of a 40 percent stake in its Louisiana LNG project to US private equity firm Stonepeak.

Woodside’s Louisiana LNG gets FERC extension

Woodside has secured an additional eight-month extension from the US FERC to complete and put into service its Louisiana LNG export facility.

Woodside’s Louisiana LNG seeks FERC extension

Woodside is seeking an additional eight-month extension from the US FERC to complete and put into service its Louisiana LNG export facility.

Aramco plans to join Woodside’s Louisiana LNG project

Saudi Arabia’s energy behemoth Aramco plans to take a stake in Woodside's Louisiana LNG export project.