Range Resources has announced that it has sold 220,000 acres in northern Louisiana to Castleton Resources LLC for $245 million, Kallanish Energy reports.
The deal brings Castleton Resources’ holdings in the gas-rich Haynesville Shale to 315,000 acres.
The deal for the assets in the Terrysville Field also includes wells drilled in the Louisiana holdings.
The assets produce 500 MMcfe/d.
The sale price may increase by $90 million in contingent payments, depending on natural gas prices.
The deal is expected to close in the coming weeks.
Range Resources, a major player in the Appalachian Basin, had purchased the holdings sold in 2016 for $4.4 billion.
It will retain certain midstream commitments in the Haynesville until they expire.
Castleton Resources is owned by Castleton Commodities International LLC and Tokyo Gas America Limited.
The deal will boost Tokyo Gas’ ownership in Castleton Resources from 46% to 70%.
Craig Jarchow, president and CEO of Castleton Resources, said, “We are very pleased to be able to purchase quality assets at a low-point in the commodity-price cycle. The company is well-positioned to enhance the value of these assets through further operational enhancements, among other activities.
“We remain focused on strategically growing and diversifying our upstream and midstream assets, and broadening our portfolio with attractive opportunities that complement our long-term business strategy,” he said.
Kazuya Kurimoto, president and CEO of Tokyo Gas America Ltd. said, “Tokyo Gas America participated in Castleton Resources in May 2017, and has grown steadily with Castleton Resources by acquiring shale and tight sand assets since then. We are pleased that Castleton Resources will join Tokyo Gas group companies, and with Castleton Resources as the base, we will continue to aim for further business expansion in East Texas and Louisiana.”
Castleton Resources will change its name to TG Natural Resources LLC by next spring.
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