Tellurian claims that the transaction is scheduled to close by the end of November this year, subject to customary closing conditions. The assets, which are located in Red River, DeSoto and Natchitoches Parishes, include the following:
- 9200 net acres, with up to 138 operated Haynesville and Bossier drilling locations.
- Approximately 1.3 trillion ft3 of total natural gas resource potential.
- 19 producing operated wells with a current net production of 4 million ft3/d.
- Associated natural gas gathering and processing facilities with substantial additional capacity.
In the statement, Tellurian claims that the assets are 100% held by production and 92% operation, allowing the company to control the pace of development for its multi-year drilling inventory.
The President and CEO of the company, 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 US$2.25/million Btu, 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 US$5.67/million Btu yesterday, providing the price signal to construct additional liquefaction capacity."
The Haynesville shale covers over 5 million acres, and is one of the US’s most prolific resource plays with more than 13 trillion ft3 of historical production, more than 44 active drilling rigs, access to a number of pipelines, and close proximity to Gulf Coast consumers and exporters.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/07092017/tellurian-subsidiary-to-acquire-core-haynesville-acreage-production-and-midstream-assets/