Sabine Oil sells interest in Texas shale assets to Osaka Gas
HOUSTON -- OG East Texas, LLC, a subsidiary of Osaka Gas Co., Ltd. (Osaka Gas), has entered into an agreement with Sabine Oil & Gas Corporation and its subsidiary Sabine East Texas Basin LLC (collectively Sabine) to acquire 35% of Sabine’s working interest in the gas properties located primarily in Harrison and Panola Counties, Texas, U.S. As a result of this acquisition, Osaka Gas will obtain approximately 30% of the working interest in the formations in the shale assets.
This project currently produces approximately 45 Mmcfepd (approximately 300,000 tons per annum of LNG) from approximately 450 wells located on approximately 100,000 acres (35,000 acres net to Osaka Gas). Sabine and Osaka Gas plan to continue developing the acreage and increasing production.
Participation in this project will further enhance the upstream operating capability of Osaka Gas, adding to its upstream business portfolio to build the natural gas value chain in the U.S., which includes Freeport LNG liquefaction business and electric power business.
Under its long-term management vision "Going Forward Beyond Borders 2030,” which focuses on overseas energy markets as one of the growth areas, the Daigas Group pursues its endeavor to expand its energy business globally along the value chain.
- Project overview
Location: East Texas (primarily Harrison and Panola Counties)
Shale Formation to be developed: Haynesville and Cotton Valley
Products: Natural gas, condensate and natural gas liquids
Participants and their approximate interest: Sabine (55%), OG (30%), others (15%) - Agreement overview
Seller: Sabine Oil & Gas Corporation and Sabine East Texas Basin LLC
Buyer: OG East Texas, LLC (a 100% subsidiary of Osaka Gas USA Corporation)
Subject asset: 35% of the working interest owned by Sabine in primarily Harrison and Panola Counties, Texas, USA.
