Diversified Energy to build US shale exposure
London-listed Diversified Energy Company said July 5 it planned to acquire shale acreage in Louisiana and eastern Texas from Tanos Energy Holdings III.
Together with Oaktree Capital Management, the company said in an announcement filed with the London Stock Exchange that it would acquire Cotton Valley and Haynesville upstream assets and related facilities for a total cash consideration of $308mn.
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The conditional sales agreement covers 390 wells that are producing around 14mn barrels of oil equivalent/day, with 96% of that as natural gas.
The joint effort is part of a collaborative agreement reached between Diversified and Oaktree in October.
Haynesville and nearby basins are among the largest US natural gas producers. Of the seven primary shale basins in the Lower 48, Haynesville is among only three that are expected to post production gains in natural gas for July.
Tanos had no public comment on the sale. Diversified and Oaktree expect to close on the deal by the middle of August.