Tellurian acquires shale asset in Louisiana
NEW ORLEANS, July 14, 2022 – Tellurian has entered a USD 125-million purchase agreement with EnSight Energy Partners and EnSight Haynesville Partners for an asset on the Haynesville Shale formation in the US, the American natural gas company announced on Wednesday.
The acquired asset covers 20.2 square kilometres and includes 44 producing wells. The play currently produces 1.27 mcm (45 mcf) per day of gas.
The current owners are running a one-rig drilling programme, which Tellurian’s subsidiary Tellurian Production aims to maintain.
The sale is expected to close in Q3 2022.
The purchase will boost Tellurian’s gas production from 1.1 mcm (39 mcf) in 2021 to around 3.97 mcm (140 mcf) in 2022.
“We have been diligently growing our natural gas production and reserves in Haynesville Shale,” said John Howie, president of Tellurian Production. “These assets provide Tellurian with both cash flow and a physical hedge for Driftwood LNG.”
Tellurian is currently developing the Driftwood LNG project near Lake Charles, Louisiana. The FID for the development was made in April 2022 and construction began the following month.
The company signed four lump-sum, turnkey contracts worth USD 15.2 billion with EPC firm Bechtel to construct the Driftwood LNG export facility in 2017.
The planned facility will have a production capacity of 27.6 million tonnes of LNG per year and is expected to be commissioned in 2026.