In connection with the acquisition of additional oil and gas assets in the U.S. of Louisiana, Tokyo Gas Co., Ltd. ("Tokyo Gas") has decided that Tokyo Gas America Ltd. ("Tokyo Gas America", President: Kazuya Kurimoto), a wholly owned subsidiary of Tokyo Gas, will take majority interest in Castleton Resources LLC ("CR"), an upstream oil and gas company in the U.S..
Castleton Resources will fund the closing of the transaction with additional equity capital from Tokyo Gas America. After such funding, Tokyo Gas America will increase its ownership interest in CR from 46% to approximately 70%. This will be our company's first acquisition of an operator in the shale gas business in the U.S.
The transaction is scheduled to be completed on August 14, 2020. Castleton Resources will change its name to "TG Natural Resources LLC" by late March 2021.
As a result of this acquisition, the production volume of gas and natural gas liquid* held by CR will increase by approximately 1.6 times from approximately 296 million cubic feet per day (8 million m3/day, gas equivalent) to 473 million cubic feet per day (13 million m3/day, gas equivalent). The impact of this transaction on consolidated results for the fiscal year is expected to be minor.
"Compass 2030," Tokyo Gas's group management vision, states that by 2030, it will increase overseas profits by 3 times. Tokyo Gas will continue to invest in expanding our business in North America.
Tokyo Gas Co., Ltd. ("Tokyo Gas") announced that, in the decision made at the meeting of its Board of Directors held on July 29th, 2020, Tokyo Gas America Ltd. ("Tokyo Gas America"), a wholly owned subsidiary of Tokyo Gas, plans to acquire additional oil and gas assets in Louisiana through its ownership interest in Castleton Resources LLC ("Castleton Resources"*1). The transaction is scheduled for completion by Castleton Resources on August 14, 2020.
Castleton Resources will fund the closing of the transaction with additional equity capital from both Tokyo Gas America and CCI. After such funding, Tokyo Gas America will increase its ownership interest in Castleton Resources from 46% to approximately 70%. In recognition of the majority interest held by Tokyo Gas America following such funding, Castleton Resources will be changing its name to "TG Natural Resources LLC" by late March 2021.
This transaction will increase the net production of Castleton Resources from 296 Mmcfepd to 473 Mmcfepd, approximately 1.6 times.
Tokyo Gas will continue to expand its upstream business in North America, one of the most strategic areas globally, as based on the Tokyo Gas Group Management Vision, Compass 2030.
Kazuya Kurimoto, President and Chief Executive Officer of Tokyo Gas America said, "Tokyo Gas America participated in Castleton Resources in May 2017, and have grown steadily with Castleton Resources by acquiring shale and tight sand assets since then. We are pleased that Castleton Resources has joined 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."
Craig Jarchow, President and Chief Executive Officer of Castleton Resources said, "With this transaction, Tokyo Gas America will become our major shareholder. We are very pleased with this outcome as it puts us in a very strong position to continue to build a world-classnatural-gas portfolio."
Castleton Resources is a company jointly owned by TG East Texas Resources LLC, a wholly owned subsidiary of Tokyo Gas America, and CCI U.S. Asset Holdings LLC, a wholly owned subsidiary of Castleton Commodities International LLC ("CCI").
Source: Tokyo Gas
