Tellurian Completes $125.5 Million Haynesville Basin Acquisition
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Tellurian, through its wholly owned subsidiary Tellurian Production (TPC), has closed on the acquisition of certain assets in the Haynesville from privately held EnSight IV Energy Partners and EnSight Haynesville Partners. The cash consideration at closing was $125.5 million, revised from the announced $125 million due to preliminary purchase price adjustments.
“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. This combination of assets represents a compelling value for our shareholders,” said Tellurian President and CEO Octávio Simões.
“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,” said TPC President John Howie.
With the closing of the EnSight acquisition, 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.
About Tellurian
Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitably delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG marketing and trading, and infrastructure that includes an ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas.
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