Tokyo Gas invests in development of unconventional Haynesville assets

May 09, 2017

HOUSTON -- Tokyo Gas America Ltd ., a wholly owned subsidiary of Tokyo Gas Co., Ltd., has acquired a 30% equity interest in Castleton Resources LLC (CR), a subsidiary of Castleton Commodities International LLC (CCI) formed to acquire and develop oil and gas assets in the East Texas/Louisiana region, with a specific focus on unconventional Haynesville assets. This is the third investment in unconventional upstream assets for Tokyo Gas in the United States and the first equity investment in an upstream company.

CR owns and operates over 160,000 net acres of leasehold in East Texas, with access to the Cotton Valley and Haynesville shale, and has a net production of 238 MMcfed.

Shunjiro Yamashita, president and CEO of Tokyo Gas America Ltd. said, “The Gulf Coast area, specifically East Texas and North Louisiana, is strategically important for Tokyo Gas and we are excited to join forces with CCI and the quality management team at Castleton Resources. The CCI/Tokyo Gas partnership in Castleton Resources creates a well - capitalized vehicle for growth in the region.”

Craig Jarchow, president and CEO of Castleton Resources LLC, said, “We welcome this new partnership with Tokyo Gas America Ltd. and remain focused on optimizing and growing our upstream and midstream assets in this region. Castleton Resources is well - positioned to enhance the value of these assets through operational improvements and development of the multiple producing zones in the area, particularly the Haynesville shale.”

Tokyo Gas Group will continue to expand its upstream business and build a global LNG value chain as stated in the Challenge 2020 Vision.

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