Tellurian has announced that its wholly owned subsidiary Tellurian Production (TPC) has entered into an agreement to purchase natural gas assets from privately held EnSight IV Energy Partners and EnSight Haynesville Partners (collectively EnSight) located in the Haynesville Shale.
The purchase price is $125 million, subject to customary closing adjustments, and a contingent payment of $7.5 million which is based on the price of natural gas and may be payable in March 2023 under certain conditions. Tellurian will fund the purchase with cash on hand and anticipates closing on the EnSight assets in the third quarter of 2022. The effective date of the transaction is August 1, 2022.
Tellurian president and CEO Octávio Simões said: “Tellurian continues to focus on two critical pathways – progressing Driftwood LNG and continuing to increase our upstream footprint. This transaction grows our 2023 estimated natural gas production by ~30 percent, increases upstream asset-level EBITDA by ~25 percent, and expands upon our existing platform.”
TPC president John Howie added: “We have been diligently growing our natural gas production and reserves in the Haynesville. These assets provide Tellurian with both cash flow and a physical hedge for Driftwood LNG. The EnSight asset is a great fit with Tellurian’s existing position in the Haynesville Shale and allows us to step into an ongoing development program and bring on-line significant additional natural gas volumes in the fourth quarter of 2022.”
For more information visit www.tellurianinc.com
