Tellurian wraps up Haynesville deal

US LNG firm Tellurian, the developer of the Driftwood LNG export facility in Louisiana, has completed the previously announced acquisition of natural gas assets in the Haynesville Shale.

Tellurian Production (TPC), a unit of Tellurian, bought the assets in the Haynesville from privately held EnSight IV Energy Partners and EnSight Haynesville Partners.

According to a Tellurian statement issued on Thursday, the cash consideration at closing was $125.5 million, revised from the announced $125 million due to preliminary purchase price adjustments.

Also, the firm funded the acquisition with cash on hand.

With the closing of the EnSight acquisition, TPC has current production of about 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 it expects to turn to sales before the end of the year.

These new wells are expected to increase TPC’s production rate to about 250 MMcfd.

“This closing represents significant progress for Tellurian and our business model,” Tellurian’s president and CEO, Octavio Simoes, said in the statement.

“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. This combination of assets represents a compelling value for our shareholders,” he said.

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