Osaka Gas acquire Sabine Oil & Gas in Texas

Osaka Gas to acquire Sabine Oil & Gas in Texas

11:43 AM, 29th July 2019
Osaka Gas logo

OSAKA, JAPAN: Osaka Gas has entered into a definitive agreement with Sabine Oil & Gas Holdings to acquire 100 percent of the outstanding shares of its subsidiary, Sabine Oil & Gas Corporation (Sabine), in Texas.

This marks the first time that a Japanese company purchases a US based shale gas developer. As this acquisition has enhanced Osaka Gas' energy business portfolio in North America, the company intends to continue developing its three US core businesses consisting of Freeport LNG liquefaction project, IPP projects and Sabine's shale gas project, to expand its income for coming years.

Sabine holds acreage in East Texas located in Harrison, Panola, Rusk, and Upshur counties, among others, totalling 175,000 net acres which is producing shale gas in the amount of 210 MMcfed with approximately 1,200 wells at present, showing a significant drilling inventory in the Haynesville and Cotton Valley formations.

Since July 2018, when Osaka Gas acquired 35 percent of the working interest in acreage in the east half of the entire asset area being developed by Sabine, the wells have been producing more than the expected volumes, generating stable cash flow. This acquisition of the outstanding shares has given Osaka Gas the entire acreage position of Sabine.

Through this acquisition, Osaka Gas has also gained operatorship of the upstream business along with Sabine's excellent management and operation capabilities. Integration of Sabine into Osaka Gas' existing shale gas development business will enhance the efficiency and sustainability of the company's US upstream business growth.

© Worldofchemicals News



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