Castleton Acquires BG Haynesville/Cotton Valley Assets in E TX and N LA
Castleton Commodities International LLC Announces Acquisition of Shell East Texas and North Louisiana Assets
STAMFORD, Conn., Dec. 30, 2019 /PRNewswire/ -- Castleton Commodities International LLC ("CCI") announced today that its subsidiary, Castleton Resources LLC ("Castleton Resources"), has closed on the acquisition of the East Texas and North Louisiana Haynesville Shale assets of BG US Production Company LLC, a subsidiary of Royal Dutch Shell plc. Pro forma for the acquisition, Castleton Resources will hold approximately 222,400 net acres in the region and produce approximately 334 MMcfe/d (net). Castleton Resources is owned by CCI and Tokyo Gas America Ltd., a wholly owned subsidiary of Tokyo Gas Co., Ltd. Concurrent with the transaction, Tokyo Gas America Ltd. will increase its interest in Castleton Resources from 30% to approximately 46%.
Craig Jarchow, President and Chief Executive Officer of Castleton Resources, said, "This transaction is consistent with our strategy of asset aggregation and subsequent cost reduction in the Ark-La-Tex region. Castleton Resources will execute this transaction with no increase in ongoing general and administrative expenses. With the help of our partners, we are well positioned to continue building a world-class, and relatively low-decline portfolio in the Haynesville and Cotton Valley natural gas and liquids plays."
Jun Tabei, President and Chief Executive Officer of Tokyo Gas America Ltd., said, "We are pleased to complete this important transaction and take yet another step towards becoming a leading gas producer in the region. The Gulf Coast, as we have previously stated, is strategically important to Tokyo Gas and we are eager to expand our footprint in the East Texas and Louisiana area through Castleton Resources."
Moelis & Company served as exclusive financial advisor to Castleton Resources in this transaction. Latham & Watkins LLP served as legal advisor.
About Castleton Commodities International LLC
CCI is a global energy commodity merchant with integrated businesses focused on marketing, merchandising, and trading commodities, and the ownership, operation and development of commodities-related upstream and infrastructure assets. Please visit our website for more information. http://www.cci.com.
About Tokyo Gas America Ltd.
Tokyo Gas America Ltd. was established on February 1, 2013 and is fully owned by Tokyo Gas Co., Ltd. Tokyo Gas America Ltd. develops wide-ranging businesses that include upstream operations such as gas field development, midstream to downstream operations as exemplified by power generation, natural gas distribution and LNG exportation in North America.
About Tokyo Gas Co., Ltd.
Tokyo Gas Co., Ltd. is the largest gas utility company in Japan. Founded October 1, 1885, the company supplies gas and power to 11 million customers in the greater Tokyo area. Tokyo Gas has developed a comprehensive range of business that spans from upstream resource development and procurement to gas transportation and sales.
Views: 1239
Replies to This Discussion
-
Permalink Reply by Skip Peel - Mineral Consultant on
-
Can't tell without a Range to go with you Section and Township. I think it is likely that the majority, if not all, of the acreage in question would be in units operated by EXCO. British Gas (BG) never acted as operator but bought a 50% interest in the EXCO leases. RDS ended up with that interest when they acquired BG.
-
Permalink Reply by jffree1 on
-
I'm wondering if they will try to acquire the Exco interest, as well. CCI is who bought out Anadarko in Panola Co. They are not aggressive drillers in that area, so far.
-
Permalink Reply by Skip Peel - Mineral Consultant on
-
I think EXCO had multiple opportunities to sell their Haynesville assets. They came close at least once that was reported. Now that they have exited bankruptcy I'm unsure whether the possibilities of a sale have improved or not. How much operated acreage does the company have in Texas, Julie? An approximation would be fine. In other words, what does EXCO have besides their Haynesville stake? Just curious.
-
Permalink Reply by Skip Peel - Mineral Consultant on
-
I thought they might still have some W TX operated interests. If not, they have nothing left to sell except the company.
-
-
They don't have anything in W TX. They still have some Eagle Ford and a handful of AC.
-
Permalink Reply by Skip Peel - Mineral Consultant on
-
Thanks.
Support GoHaynesvilleShale.com
Top Content
Blog Posts
The Lithium Connection to Shale Drilling
Shale drilling and lithium extraction are seemingly distinct activities, but there is a growing connection between the two as the world moves towards cleaner energy solutions. While shale drilling primarily targets…
ContinuePosted by Keith Mauck (Site Publisher) on November 20, 2024 at 12:40
Not a member? Get our email.
Groups
-
San Augustine, TX
386 members
-
Miller County, Arkansas
27 members
-
Sabine Parish, LA
455 members
-
South Caddo Parish Group
440 members
-
Natchitoches Parish
400 members
-
Bienville Parish, LA
244 members
-
Fayetteville Shale
149 members
-
North Caddo Parish
358 members
-
Central Texas Gas
63 members
-
Cass County, TX
119 members
© 2024 Created by Keith Mauck (Site Publisher).
Powered by
