Tokyo Gas America has acquired a 30% equity interest in Castleton Commodities International (CCI) owned US oil and gas unit.
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The acquisition was made through TG East Texas Resources, a wholly owned subsidiary of Tokyo Gas America.
Castleton Resources is engaged in acquiring and developing oil and gas assets in the East Texas / Louisiana region, with an emphasis on unconventional Haynesville assets.
The latest acquisition is Tokyo Gas’ third investment in unconventional upstream assets in the US and the first equity investment in an upstream company.
With a net production of 238mmcfed, Castleton Resources has operational and ownership rights over 160,000 net acres of leasehold in East Texas with access to the Cotton Valley and Haynesville shale.
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By GlobalDataTokyo Gas America president and CEO Shunjiro Yamashita 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-capitalised vehicle for growth in the region.”
Tokyo Gas Group has reported it will proceed with its upstream business expansion plan and build a global LNG value chain.
Moelis & Company and SMBC Nikko Securities acted as financial advisors to Tokyo Gas during the transaction, while Andrews Kurth Kenyon served as legal advisor.
Image: Oil drilling rig. Photo: courtesy of rsvstks via FreeImages.
