Tokyo Gas is increasing its ownership in U.S. oil and gas company Castleton Resources to a 70% stake, marking the company’s first acquisition of a U.S. shale gas operator.
The Japanese gas firm currently owns 46% of Castleton Resources, a company with operating assets in East Texas. The transaction is expected to be completed on Aug. 14, 2020, and will see Castleton change its name to TG Resources by late March 2021, Kallanish Energy reports.
The 65 billion yen ($618 million) deal, also includes the acquisition of assets in North Louisiana – targeting the Haynesville and Cotton Valley formations. Tokyo Gas didn’t provide further details on the acquisition.
As a result of the deal, Castleton’s gas and natural gas liquids (NGLs) production volume is set to more than double to 473 million cubic feet per day (Mmcf/d), from 296 Mmcf/d.
Tokyo Gas said on Wednesday it will continue investing to expand its business in North America, as part of its strategy to triple its overseas profits.
Castleton Commodities International (CCI) holds a 54% stake in Castleton Resources.
This post appeared first on Kallanish Energy News.