Osaka To Become First Japanese Shale Owner

摘要

OSAKA GAS CO.Ltd.agreed on July 29 to buy Houston-based independent Sabine Oil & Gas Corp.as the Japanese company looks to U.S.shale for growth.The transaction,which still requires government approvals,will mark the first time a Japanese company has purchased a U.S.-based shale gas developer,Osaka Gas said in its release.Sabine,a former publicly traded E&P which emerged as a private company after filing for bankruptcy in 2016,operates in the Haynesville and Cotton Valley shale plays in East Texas.According to a report by Reuters,the sale of Sabine is worth $610 million.The acquisition of Sabine includes an acreage position in East Texas,which Osaka Gas had acquired a 35% interest in for about $144.5 million last year.Since acquiring its stake in Sabine's East Texas position,Osaka said,”The wells have been producing more than expected volumes,generating stable cash flow.”Sabine's position totals 175,000 net acres and about 1,200 wells in Harrison,Panola,Rusk and Upshur counties,Texas.Production from the acreage is 210 million cubic feet equivalent per day of shale gas,according to the company release.Osaka Gas said the acquisition will support its long-term goal to expand its global energy businesses”along the energy value chain from upstream to mid-and downstream business,including LNG trading.”