Tellurian Inc., through its wholly owned subsidiary Tellurian Production LLC (TPC), has signed a purchase agreement to acquire natural gas assets from EnSight IV Energy Partners, LLC and EnSight Haynesville Partners, LLC located in the Haynesville Shale in Northwest Louisiana and East Texas, USA.

The value of the transaction is US$125 million, subject to usual closing adjustments and a contingent payment of US$7.5 million that is based on the price of natural gas could become due in March 2023, depending on the circumstances.

The Natural gas assets include:

• Current net production of about 45 million cubic feet of natural gas per day (MMcf/d);
• Approximately 5,000 net acres in the core of the Haynesville Shale in DeSoto, Bossier, Caddo, and Webster Parishes, Louisiana;
• 44 producing wells and five wells in progress at transaction close.

Tellurian expects to close on the EnSight assets in Q3 and will finance the acquisition with cash. The transaction will go into effect on August 1, 2022.