Tellurian announced yesterday it has entered into an
agreement with a private seller to acquire natural gas producing assets and
undeveloped acreage in northern Louisiana for $85.1 million. The transaction is
scheduled to close by the end of November 2017 subject to customary closing
According to a company statement 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
- Approximately 1.3 trillion cubic feet (Tcf) of total natural gas resource
- 19 producing operated wells with net current production of four million cubic
feet per day (MMcfd) Associated natural gas gathering and processing facilities
with substantial additional capacity
The assets are 100% held by production and 92% operated, allowing Tellurian to
control the pace of development for its multi-year drilling inventory.
President and CEO Meg Gentle said, "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. Platts LNG Daily reported the price of
LNG in the Gulf of Mexico was $5.67 per MMBtu yesterday, providing the price
signal to construct additional liquefaction capacity."
Tellurian was founded by Charif Souki and Martin Houston
and is led by President and CEO Meg Gentle. Tellurian plans to build a natural
gas business that includes development of the Driftwood LNG terminal, an ~ 26
mtpa LNG export facility, and an associated pipeline.