Tellurian Inc. announced that its subsidiary, Tellurian Production, closed on its previously announced acquisition of $125.5 million worth of assets in the Haynesville shale basin.
Tellurian purchased upstream assets from EnSight IV Energy Partners, LLC and EnSight Haynesville Partners, LLC. These will work in conjunction with Tellurian’s pipeline network and the Driftwood LNG terminal, which is west bank of the Calcasieu River in Louisiana. Driftwood Pipeline and Driftwood LNG are both subsidiaries of Tellurian Inc.
“This closing represents significant progress for Tellurian and our business model,” Tellurian President and CEO Octávio Simões said. “By owning and operating upstream assets, a pipeline network and the Driftwood LNG terminal, Tellurian will have the ability to sell natural gas into domestic or international markets. This combination of assets represents a compelling value for our shareholders.”
The combination of Tellurian’s existing assets with the acquisition results in an acreage position of more than 20,000 acres and an inventory of more than 275 high return, de-risked drilling locations, Tellurian Production President John Howie said.
With the closing of the EnSight acquisition, Tellurian Production has current production of approximately 150 million cubic feet/day (MMcfd) from assets in the Haynesville basin. In addition, Tellurian Production operates 11 wells currently being drilled or completed, all of which the company expects to turn to sales before the end of the year. The new wells are expected to increase Tellurian Production’s production rate to approximately 250 MMcfd.
