![Aethon Closes $260MM Deal for Tellurian’s Gas, Midstream Assets](/sites/default/files/styles/hart_news_article_image_640/public/image/2024/07/shutterstock-1aethon-closes-deal-tellurian-gas-and-midstream-assets973225927.jpg?itok=Kb7WhDFH)
(Source: Shutterstock.com)
Aethon closed a deal with Tellurian Inc. to grow its Haynesville Shale assets to about 375,000 total acres and its natural gas gathering and treatment capacity to more than 3 Bcf/d, Aethon said on July 1.
Tellurian announced the $260 million deal with Aethon in May. The move transforms Tellurian into a pure-play LNG firm. Tellurian company said the proceeds from the sale would be used to reduce debt on its Driftwood LNG development on the Calcasieu River in Louisiana.
![Aethon Closes $260MM Deal for Tellurian’s Gas, Midstream Assets](/sites/default/files/inline-images/Tellurian%20Aethon%20Rextag%20Map_0_0.jpg)
“This transaction is a significant step in securing our balance sheet and progressing Driftwood,” said Tellurian Executive Chairman Martin Houston in a press release.
As part of the deal, Aethon signed a heads of agreement (HOA) for 2 metric tons per year of LNG from the Driftwood project.
“As a private equity firm and operator, we are excited to enhance our strategic footprint by integrating Tellurian's upstream and midstream assets into our extensive Haynesville position,” said Gordon Huddleston, Aethon’s president and partner.
Recommended Reading
California Resources Wraps $1.1B Deal, Becomes State’s Top Oil Producer
2024-07-01 - California Resources Corp.’s deal to acquire Aera Energy for more than $2 billion, including debt, makes it the state’s largest oil producer at 146,000 boe/d, 79% oil, the company said.
It’s All Relative: Family Oil Companies Attract Huge M&A Attention
2024-07-01 - What role do firms controlled by descendants of the original Permian Basin wildcatters play in a sector increasingly dominated by scale?
Formation Minerals Acquires Haynesville Shale Interests
2024-07-01 - Formation Minerals purchased Haynesville Shale interests on acreage operated by Aethon Energy Management.
TotalEnergies Sells Gas Field Interests West of Shetland Islands
2024-06-27 - Prax Group will take over TotalEnergies’ oil and gas assets in the maturing play north of Scotland.
Occidental Explores Sale of Permian Assets Worth Over $1B, Sources Say
2024-05-03 - Occidental Petroleum is exploring a sale of assets in the Barilla Draw region of Texas, which is located within the Delaware portion of the Permian Basin.