(Source: Hart Energy)
In its first acquisition of a shale gas operator, Tokyo Gas Co. Ltd. will take a controlling interest in Castleton Resources LLC, the Japanese company said July 29.
Through its subsidiary, Tokyo Gas America Ltd., Tokyo Gas will pay about $620 million ($65 billion JPY) as it increases its ownership in Castleton Resources to 70% from 46%. Tokyo Gas said the investment was made in connection with the acquisition of additional oil and gas assets in Louisiana.
Tokyo Gas plans to purchase more Louisiana oil and gas assets through Castleton Resources with closing set for Aug. 14.
In December 2019, Castleton said it had closed on the acquisition of the East Texas and North Louisiana Haynesville Shale assets of Royal Dutch Shell Plc as the supermajor exited the play.
The Anglo-Dutch company had previously sold off a bulk of its Haynesville assets roughly six years ago to Vine Oil & Gas LP and its partner Blackstone for $1.2 billion in cash. Shell’s remaining assets in the Haynesville gas play consisted of a nonoperated position, according to its website.
With the Shell acquisition, Castleton Resources was expected to own about 222,400 net acres in the the Ark-La-Tex region.
Castleton plans to fund the closing of the transaction announced July 29 with additional equity capital from both Tokyo Gas America and the global energy commodity merchant Castleton Commodities International LLC (CCI). After the funding, Tokyo Gas America will increase its ownership interest in Castleton Resources. Castleton will also change its name to TG Natural Resources LLC by March 2021.
Tokyo Gas acquired a 30% stake in Castleton Resources from CCI for an undisclosed price in 2017. Concurrent with the Shell transaction, Tokyo Gas increased its interest in Castleton Resources to about 46%.
Castleton and Tokyo Gas operate and develop acreage in East Texas and Louisiana targeting the Haynesville and Cotton Valley. Tokyo Gas said the acquisition announced July 29 will increase production of Castleton’s production 1.6x to 473 MMcf/d from 296 MMcf/d.
In connection with the deal, Tokyo Gas’s group management said that, by 2030, its overseas profits will increase by 3x. Tokyo Gas plans to continue to invest in expanding its business in North America.
In another energy deal in the U.S. announced July 29, Tokyo Gas also said it would purchase the Aktina Solar Project in Wharton County, Texas, which has been developed by Hecate Energy LLC of Chicago. That acquisition is scheduled to close Aug. 5.
Recommended Reading
Exxon’s Upstream President Liam Mallon to Retire After 34 Years
2024-12-03 - Exxon Mobil’s board has appointed Dan L. Ammann, currently Exxon’s low carbon solutions president, to assume Liam M. Mallon’s roles.
EON Enters Funding Arrangement for Permian Well Completions
2024-12-02 - EON Resources, formerly HNR Acquisition, is securing funds to develop 45 wells on its 13,700 leasehold acres in Eddy County, New Mexico.
E&P Consolidation Ripples Through Energy Finance Providers
2024-11-29 - Panel: The pool of financial companies catering to oil and gas companies has shrunk along with the number of E&Ps.
Utica Oil E&P Infinity Natural Resources’ IPO Gains 7 More Bankers
2024-11-27 - Infinity Natural Resources’ IPO is expected to provide a first-look at the public market’s valuation of the Utica oil play.
New Fortress Makes Headway on $2.7B Debt Refinancing
2024-11-26 - New Fortress Energy Inc. anticipates raising approximately $325 million in gross proceeds through the refinancing.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.