Tokyo Gas said that through its unit, Tokyo Gas America, it has purchased a 30 percent equity in Castleton Resources, a company focused on developing oil and gas assets in east Texas and Louisiana.
Castleton Resources, a unit of Castleton Commodities International, focuses on developing the unconventional Haynesville assets.
The company owns and operates over 160,000 net acres of leasehold in East Texas with access to the Cotton Valley and Haynesville shale and has a net production of 238 mmcfepd, Tokyo Gas said.
Speaking of the acquisition, Craig Jarchow, president and CEO of Castleton Resources, said the company will remain “focused on optimizing and growing” its upstream and midstream assets in the region.
Speaking to reporters, Tokyo Gas’ senior general manager of global business development, Isao Hosoya, said that, although the acquisition will allow Tokyo Gas to expand its business in the natural gas value chain, it does not plan to realize an LNG project through the joint venture, Reuters reports.