Tellurian Completes Haynesville Basin Acquisition
August 18 2022 - 12:03PM
Business Wire
Tellurian Inc. (Tellurian) (NYSE American: TELL) today announced
that its wholly owned subsidiary, Tellurian Production LLC (TPC),
has closed the previously announced acquisition of certain assets
in the Haynesville from privately held EnSight IV Energy Partners,
LLC and EnSight Haynesville Partners, LLC. The cash consideration
at closing was $125.5 million, revised from the announced $125
million due to preliminary purchase price adjustments. The
consideration was funded with cash on hand.
Tellurian President and CEO Octávio Simões said, “This closing
represents significant progress for Tellurian and our business
model. By owning and operating upstream assets, a pipeline network
and the Driftwood LNG terminal, Tellurian will have the ability to
sell natural gas into domestic or international markets. This
combination of assets represents a compelling value for our
shareholders.”
John Howie, President of TPC, commented, “The EnSight
acquisition is an excellent strategic and operational fit for
Tellurian. The combination of our existing assets with this
acquisition results in an acreage position of more than 20,000
acres and an inventory of more than 275 high return, de-risked
drilling locations, most of which we can drill opportunistically
for incremental free cash flow.”
Preliminary production outlook
With the closing of the EnSight acquisition, TPC has current
production of approximately 150 million cubic feet/day (MMcfd) from
assets in the Haynesville basin. In addition, TPC operates 11 wells
currently being drilled or completed, all of which TPC expects to
turn to sales before the end of the year. These new wells are
expected to increase TPC’s production rate to approximately 250
MMcfd.
About Tellurian Inc.
Tellurian intends to create value for shareholders by building a
low-cost, global natural gas business, profitably delivering
natural gas to customers worldwide. Tellurian is developing a
portfolio of natural gas production, LNG marketing and trading, and
infrastructure that includes an ~ 27.6 mtpa LNG export facility and
an associated pipeline. Tellurian is based in Houston, Texas, and
its common stock is listed on the NYSE American under the symbol
“TELL”.
For more information, please visit www.tellurianinc.com. Follow
us on Twitter at twitter.com/TellurianLNG
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws. The words
“anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,”
“forecast,” “initial,” “intend,” “may,” “plan,” “potential,”
“project,” “proposed,” “should,” “will,” “would,” and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements herein relate to, among other things,
the capacity, timing, and other aspects of the Driftwood LNG
project, the benefits of Tellurian’s business model and the
acquisition and pro forma wells, production, capital projects,
locations and cash flows. These statements involve a number of
known and unknown risks, which may cause actual results to differ
materially from expectations expressed or implied in the
forward-looking statements. These risks include the matters
discussed in Item 1A of Part I of the Annual Report on Form 10-K of
Tellurian for the fiscal year ended December 31, 2021 filed by
Tellurian with the Securities and Exchange Commission (the SEC) on
February 23, 2022, and other Tellurian filings with the SEC, all of
which are incorporated by reference herein. The forward-looking
statements in this press release speak as of the date of this
release. Although Tellurian may from time to time voluntarily
update its prior forward-looking statements, it disclaims any
commitment to do so except as required by securities laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20220817005616/en/
Media: Joi Lecznar EVP Public and Government Affairs
Phone +1.832.962.4044 joi.lecznar@tellurianinc.com
Investors: Matt Phillips Vice President, Investor
Relations Phone +1.832.320.9331
matthew.phillips@tellurianinc.com
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