Osaka Gas has decided to participate in Pearsall shale gas and liquids project in the state of Texas in the United States. Through a purchase and sale agreement with Cabot Oil & Gas Corporation concluded in Houston last week, the company will acquire a 35% working interest in an acreage being developed by Cabot for a total consideration of approximately US$250 million.
Acquisition of upstream energy interest has been a focal point in the international energy business activities of Osaka Gas. This will be the first shale gas and liquids project for Osaka Gas in the United States, following the company’s equity participation in a shale gas project in British Columbia in Canada last November. Osaka Gas intends to develop its activities further along gas value chain.
Under the term of the joint venture agreement between the two companies, Cabot will drill several hundred wells in the Pearsall Shale acre in Eagle Ford Region for the next 30 years. Natural gas, condensate and natural gas liquids to be produced in the project will be marketed in the United States. The operation of the joint venture will be taken care of by Cabot which has rich expertise and experience in shale gas and liquids development projects in the United States.
LNG World News Staff, June 25, 2012