Tellurian Inc. is said to be in talks to acquire Chesapeake Energy Corp.'s Louisiana natural gas drilling fields in the Haynesville Shale, The Wall Street Journal reported March 8, citing "people familiar with the matter."
Jefferies analysts valued the assets at $2.0 billion but the acquisition is not yet guaranteed, the report said, noting that Tellurian has offered Chesapeake equity as part of the purchase consideration but the latter has shown little interest in the option. It is possible that the deal may not push through. The Journal also noted that Tellurian is engaged in talks with other producers with a presence in Haynesville.
The report comes as the Houston-based company seeks to add natural gas assets to its roster, which already includes pipeline and liquefaction capacity. Tellurian was founded by former Cheniere Energy Inc. CEO Charif Souki and former BG Group plc COO Martin Houston to export the liquid fuel from its planned Driftwood LNG project near Lake Charles, La.
The company expects make a final investment decision on the Driftwood LNG project as soon as it receives its approval from the Federal Energy Regulatory Commission, which Tellurian has said it expects in mid-2018.
In 2017, Tellurian acquired $85 million worth of natural gas producing assets and acreage in northern Louisiana. Under the deal, Tellurian acquired about 4 MMcf/d of gas production, about 1.3 Tcf of gas resources, and about 138 drilling locations.
