Tokyo Gas Buys Stake in Texas Shale Gas Assets from VirTex Group

Japanese utility Tokyo Gas late Tuesday confirmed it has acquired 25 percent stake in Eagle Ford shale gas assets of the VirTex Group located in the Webb and La Salle counties of south Texas.

Earlier on Tuesday, Nikkei, citing sources, reported the utility could buy the state as early as this month for about $48 million. Tokyo Gas in a statement published on its website said 25 percent working interest in the joint project with Lewis Energy Group (operator) and BP Lower 48 corresponds to approx. 34,000 acres.

Tokyo Gas estimates that the net capital required to be some $75 million. It also said natural gas production for Tokyo Gas could average annual 0.20 million tonne. The produced gas is to be marketed in the US market.

It is the second time for Tokyo Gas to join the shale gas development in the US, following the Barnett shale gas venture in 2013.