Sabine Oil & Gas Holdings said Monday it’s closed the sale of its subsidiary, Sabine Oil & Gas Corp. to Osaka Gas USA Corp., parent company Osaka Gas’s first move into U.S. upstream.
As part of the sale, Osaka Gas USA will retain the current Sabine executive team and employees, Kallanish Energy reports.
Sabine Holdings has completely divested of all its oil and gas assets since emerging from bankruptcy in August 2016. East Texas production and reserves increased significantly primarily by proving up the Haynesville play in Texas with a combination of longer laterals and enhanced completions and proving up new Cotton Valley drilling inventory with longer laterals.
“We appreciate Osaka Gas USA recognizing our exceptional talent and acquiring it along with our assets,” said Doug Krenek, Sabine Holdings’ president and CEO.
“We look forward to helping Osaka Gas USA realize its plans to develop the Sabine assets and use our management team and employees to be a platform for growth in the U.S.”
Osaka Gas president Takehiro Honjo said: “I am delighted to welcome Sabine Corp., with outstanding talent and expertise in U.S. shale gas development, to our family. While Osaka Gas has participated in the Freeport LNG liquefaction project and IPP (independent power producer) projects in the U.S., we intend to expand our U.S. upstream business by enhancing our capabilities with Sabine Corp’s excellent operatorship.”
Barclays acted as exclusive financial advisor to Sabine in the transaction. Hunton Andrews Kurth LLP advised Sabine Oil & Gas Holdings in connection with the transaction.
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