The assets include 9,200 net acres with up to 138 operated drilling locations, ~1.3T cf of total natural gas resource potential, 19 producing operated wells with net current production of 4M cf/day, and associated natural gas gathering and processing facilities with substantial additional capacity; the assets are 100% held by production and 92% operated.
TELL expects full cycle cost of production and transport to markets of ~$2.25/MMBtu, which represents a significant savings to current natural gas prices.
At less than $9,250 per acre, it has to be Tier 2 or 3 rock on the outer fringe of the play. It is however a nice vote for the future of natural gas prices. I'll guess QEP (formerly Questar) much of their leasehold is in the northeast corner of the defined fairway and in Bienville Parish.
The assets are in RR, DeSoto, and Natch. Buyer is the Cheniere guys. My guess is the seller is Samson.
Tellurian enters into agreement to acquire core Haynesville acreage, production and midstream assets HOUSTON, TX -- (Marketwired) -- 09/06/17 -- A wholly-owned subsidiary of Tellurian Inc. (Tellurian) (NASDAQ: TELL) has entered into an agreement with a private seller to acquire natural gas producing assets and undeveloped acreage in northern Louisiana for $85.1 million. The transaction is scheduled to close by the end of November 2017 subject to customary closing conditions. The assets are located in Red River, DeSoto and Natchitoches Parishes, and include: 9,200 net acres with up to 138 operated Haynesville and Bossier drilling locations Approximately 1.3 trillion cubic feet (Tcf) of total natural gas resource potential 19 producing operated wells with net current production of four million cubic feet per day (MMcfd) Associated natural gas gathering and processing facilities with substantial additional capacity The assets are 100% held by production and 92% operated, allowing Tellurian to control the pace of development for its multi-year drilling inventory. President and CEO 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 $2.25 per MMBtu, 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 $5.67 per MMBtu yesterday, providing the price signal to construct additional liquefaction capacity." Covering more than five million acres, the Haynesville shale is one of the most prolific resource plays in the United States with over 13 Tcf of historical production, more than 44 active drilling rigs, access to multiple pipelines and close proximity to Gulf Coast consumers and exporters.
Didn't Samson recently sell their Haynesville leasehold to Rockcliff?
We (Harrison/Panola) recently signed assignment documents from Samson to Rockcliff.
Rockcliffe bought my Samson wells, they've already contacted me
It may be that Rockcliff sold the old Samson Louisiana leasehold to Tellurian and kept the Texas leasehold. The three parishes: Red River, Natchitoches and DeSoto is a fit for the Samson Contour producing Haynesville wells. I can't think of any other operator footprint that would fit the scenario. Nor can I think of one that would want this acreage. It's generally of poor quality but that would also fit the bargain basement price paid. Tellurian is an LNG company started by Charif Souki after he was ousted from Cheniere.
boy oh boy skip, you really know how to make us Samson owners feel good about our properties LOL
Sorry, olddog but I call 'em as I see 'em. Okay, I'll change "poor" to "lesser" quality if that will help. :-)
poor makes my wallet hurt, lesser is easier to deal with :)
I'm glad that helps. LOL!
I guess its a little early but does tellurian have any experience drilling?