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