Osaka Gas Buys US Shale Gas Stake
Japanese utility Osaka Gas said June 29 it has agreed with Sabine Oil & Gas Corporation to acquire a stake in a shale gas project in Texas.
Osaka Gas will have a 30% working interest while Sabine will have 55% stake. The rest 15% interest will be held by other investors. The project is at present producing 45mn ft3/d (equivalent to about 300,000 tons/yr of LNG) from about 450 wells, Osaka Gas said, adding that Sabine and Osaka Gas plan to continue developing the acreage and increasing production.
No value was disclosed for the transaction. The asset is primarily in Harrison and Panola counties in east Texas; the shale formation to be developed is the Haynesville and Cotton Valley.
This is Osaka Gas’ second investment in US shale gas. In 2012, the company paid $249mn for a 35% stake in a Texas shale gas and oil project run by Cabot Oil & Gas Corp.