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Tokyo Gas acquires 30% equity interest in Castleton Resources

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LNG Industry,


Tokyo Gas America Ltd – a wholly owned subsidiary of Tokyo Gas Co. Ltd – has acquired through its affiliate a 30% equity interest in Castleton Resources LLC (CR).

CR is a subsidiary of Castleton Commodities International LLC (CCI), and was formed to acquire and develop oil and gas assets in the East Texas/Louisiana region of the US, with a specific focus on unconventional Haynesville assets. Tokyo Gas claims that this is the third investment in unconventional upstream assets for Tokyo Gas in the US and the first equity investment in an upstream company.

CR owns and operates more than 160 000 net acres of leasehold in East Texas with access to the Cotton Valley and Haynesville Shale, and has a production of 238 mmcfepd.

The President and CEO of Tokyo Gas America Ltd, Shunjiro Yamashita, said: “The Gulf Coast area, specifically East Texas and North Louisiana, is strategically important for Tokyo Gas and we are excited to join forces with CCI and the quality management team at Castleton Resources. The CCI / Tokyo Gas partnership in Castleton Resources creates a well-capitalised vehicle for growth in the region.”

The President and CEO of Castleton Resources LLC, Craig Jarchow, added: “We welcome this new partnership with Tokyo Gas America Ltd. and remain focused on optimising and growing our upstream and midstream assets in this region. Castleton Resources is well-positioned to enhance the value of these assets through operational improvements and development of the multiple producing zones in the area, particularly the Haynesville Shale.”

Tokyo Gas Group will carry on expanding its upstream business, and will construct a global LNG value chain as stated in the Challenge 2020 vision.

In the statement, the company claims that Moelis & Company and SMBC Nikko Securities acted as financial advisors for the transaction, whilst Andrews Kurth Kenyon LLP served as the legal advisor.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/08052017/tokyo-gas-acquires-30-equity-interest-in-castleton-resources/


 

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