US-based firm Tellurian’s wholly owned subsidiary has signed an agreement to acquire natural gas producing assets and undeveloped acreage in northern Louisiana’s Haynesville Shale from an undisclosed company for $85.1m.

Located in Red River, DeSoto and Natchitoches Parishes, the proposed assets comprise 9,200 net acres with up to 138 operated Haynesville and Bossier drilling locations.

The acquisition includes around 1.3 trillion cubic feet (tcf) of natural gas resource potential, with 19 producing operated wells having a net production of four million cubic feet per day (mmcfd).

In addition, Tellurian will have control over associated natural gas gathering and processing facilities with additional capacity.

Tellurian president and CEO Meg Gentle said: "Acquisition of natural gas producing assets is integral to our growing business.

"Acquisition of natural gas producing assets is integral to our growing business."

“We expect our full cycle cost of production and transport to markets will be approximately $2.25 per million British thermal units (mmbtu), which represents a significant savings to natural gas we will purchase at Henry Hub and other regional liquidity points.

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“Platts LNG Daily reported the price of LNG in the Gulf of Mexico was $5.67 per mmbtu yesterday, providing the price signal to construct additional liquefaction capacity."

The Haynesville shale covers in excess of five million acres and has more than 13tcf of production, with more than 44 active drilling rigs.

The resource play also presents Tellurian access to multiple pipelines and Gulf Coast consumers and exporters.

The company is planning to build a natural gas business through the development of the Driftwood LNG terminal, an approximately 26mtpa LNG export facility, as well as an associated pipeline.

Subject to customary closing conditions, the transaction is expected to close by the end of November this year.