Castleton Resources is one of the largest producers in the Ark-La-Tex region of East Texas and Northern Louisiana
Castleton agrees to acquire upstream from Range Resources. (Credit: Adam Radosavljevic from Pixabay.)
Castleton Resources LLC (“Castleton Resources” or the “Company”) announced today that it has entered into a definitive agreement to acquire the Terryville upstream assets in Northern Louisiana from subsidiaries of Range Resources Corporation (“Range”) for $245 million plus contingent payments that are a function of commodity prices. Under the terms of the agreement, Range will retain certain midstream commitments through their remaining term.
Castleton Resources is owned by Castleton Commodities International LLC (“CCI”) and Tokyo Gas America Ltd., a wholly owned subsidiary of Tokyo Gas Co., Ltd. Tokyo Gas America Ltd. will increase its ownership in Castleton Resources from 46% to approximately 70% when the acquisition closes, with the balance to be held by CCI.
Pro forma for the Terryville acquisition, Castleton Resources will own over 315,000 net acres of leasehold in East Texas and Northern Louisiana with total daily net production of nearly 500 MMcfe/d.
Craig Jarchow, President and CEO of Castleton Resources, said, “We are very pleased to be able to purchase quality assets at a low-point in the commodity-price cycle. The Company is well-positioned to enhance the value of these assets through further operational enhancements, among other activities. We remain focused on strategically growing and diversifying our upstream and midstream assets, and broadening our portfolio with attractive opportunities that complement our long-term business strategy.”
Kazuya Kurimoto, President and Chief Executive Officer of Tokyo Gas America Ltd. said, “Tokyo Gas America participated in Castleton Resources in May 2017, and has grown steadily with Castleton Resources by acquiring shale and tight sand assets since then. We are pleased that Castleton Resources will join Tokyo Gas group companies, and with Castleton Resources as the base, we will continue to aim for further business expansion in East Texas and Louisiana.”
Source: Company Press Release