Page 5 - GLNG Week 29 2022
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GLNG AMERICAS GLNG
Tellurian to buy Haynesville
assets from EnSight
COMPANIES US LNG developer Tellurian announced this The purchase comes as Tellurian continues
week that its production unit had agreed to buy to grow its upstream footprint for supplying
natural gas assets in Louisiana’s Haynesville shale feedstock gas to its planned Driftwood LNG
play from privately owned EnSight IV Energy export terminal on Louisiana’s Gulf Coast. The
Partners and EnSight Haynesville Partners. company noted that once the transaction closes,
Tellurian is buying the assets for $125mn, Tellurian Production’s Haynesville acreage will
and may follow up with a contingent payment total roughly 20,000 net acres (81 square km),
of $7.5mn depending on the natural gas price in with over 275 gross drilling locations and a net
March 2023. The company said it would fund the resource of more than 2 trillion cubic feet (56.6
acquisition with cash on hand, with closing of the bcm).
transaction anticipated during this quarter. The company is planning to run a two-rig
EnSight’s assets include net dry gas produc- programme in 2023, with output coming in at
tion of around 45mn cubic feet (1.3mn cubic around 350 mmcf (9.9 mcm) per day.
metres) per day. The assets are spread across The acquisition is aligned with Tellurian’s
roughly 5,000 net acres (20 square km) and plan to become an integrated company that owns
include 44 producing wells, along with five wells upstream production to help supply its LNG
that will still be in progress when the transaction facility. It views this business model as a way of
closes. Proven reserves associated with the assets shielding itself against rising costs and poten-
are estimated to total 108bn cubic feet (3.1bn tially diversifying its revenue streams.
cubic metres) and Tellurian described the drill- Construction is already underway on the
ing inventory as high-return. 27.6mn tonne per year (tpy) Driftwood LNG
EnSight is currently operating a one-rig drill- terminal, but a final investment decision (FID)
ing programme on the properties, and Tellurian on the facility is still pending.
said it planned to carry on with this programme
in the fourth quarter, once it has completed the
acquisition.
Week 29 22•July•2022 www. NEWSBASE .com P5
