Tellurian explores sale of Haynesville upstream business to develop natural gas offerings
(WO) – Tellurian Inc. has asked its financial advisor, Lazard, to explore opportunities for the sale of Tellurian’s Haynesville upstream business.
Tellurian produced 19.5 Bcf of natural gas for the quarter ended September 30, 2023. Tellurian’s natural gas assets include 31,149 net acres, interests in 159 producing wells and over 400 drilling locations, primarily in the U.S. Haynesville play. Tellurian maintains an exemplary operational safety record and demonstrates responsible environmental stewardship. Implementing an active emissions monitoring program, electrifying all new production well sites, and committing to green completions are just a few examples of Tellurian’s efforts to reduce its carbon footprint.
Chief Executive Officer Octávio Simões said, “As we commercialize Driftwood LNG, Tellurian has been reviewing its strategy, including the dynamics of the U.S. natural gas market in the context of global LNG demand. We have concluded that there are alternative gas supply strategies available to us from various basins and our ownership of upstream assets is not necessary at this stage of Tellurian’s development. We have a substantial number of drilling locations that we believe will be highly attractive to oil and gas producers that can develop them more quickly than we would.”
“By unlocking the full value of these high-quality assets, we aim to substantially reduce our debt, further reduce our general and administrative expenses, and provide additional cash, enabling us to develop Driftwood LNG. Currently, this approach is more attractive than issuing equity to fund our 2024 development activities and working capital needs,” Simões added.