Castleton Resources to Acquire Range Resources’ Terryville Upstream Assets for $245 Million
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Castleton Resources has entered into a definitive agreement to acquire the Terryville upstream assets in Northern Louisiana from subsidiaries of Range Resources Corporation for $245 million plus contingent payments that are a function of commodity prices. Under the terms of the agreement, Range will retain certain midstream commitments through their remaining term.
Castleton Resources is owned by Castleton Commodities International (CCI) and Tokyo Gas America. Tokyo Gas America Ltd. will increase its ownership in Castleton Resources from 46 percent to approximately 70 percent when the acquisition closes, with the balance to be held by CCI.
Pro forma for the Terryville acquisition, Castleton Resources will own over 315,000 net acres of leasehold in East Texas and Northern Louisiana with total daily net production of nearly 500 MMcfe/d.
“We are very pleased to be able to purchase quality assets at a low-point in the commodity-price cycle. The company is well-positioned to enhance the value of these assets through further operational enhancements, among other activities. We remain focused on strategically growing and diversifying our upstream and midstream assets, and broadening our portfolio with attractive opportunities that complement our long-term business strategy,” said Craig Jarchow, president and CEO of Castleton Resources.
“Tokyo Gas America participated in Castleton Resources in May 2017, and has grown steadily with Castleton Resources by acquiring shale and tight sand assets since then. We are pleased that Castleton Resources will join Tokyo Gas group companies, and with Castleton Resources as the base, we will continue to aim for further business expansion in East Texas and Louisiana,” said Kazuya Kurimoto, president and chief executive officer of Tokyo Gas America.
The transaction is scheduled to close on August 14, 2020.
Castleton Resources will change its name to TG Natural Resources by late March 2021.
About Castleton Resources
Castleton Resources is one of the largest producers in the Ark-La-Tex region of East Texas and Northern Louisiana. The company is private and is co-owned by subsidiaries of Tokyo Gas America and Castleton Commodities International.
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