Published on 31 May 2024 on Zacks via Yahoo Finance

Tellurian (TELL) Advances Driftwood LNG Project With Aethon Deal

Tellurian Inc. TELL has signed an agreement with Aethon Energy Management, the Dallas-based private investment firm, wherein the latter would acquire TELL’s integrated upstream assets for a total consideration of $260 million. The agreement also involves a Heads of Agreement to procure 2 million tons per annum (mmtpa) of liquefied natural gas (LNG) from Tellurian’s Driftwood LNG facility. The transaction is expected to be concluded during the second half of 2024.

Aethon’s presence in the Louisiana Haynesville and Bossier shale has been expanded by nearly 31,000 net acres with the deal. Moreover, the acquisition involves gathering and treating systems with a capacity of up to 100 million cubic feet per day (MMcf/d). This should take Aethon’s pro forma gathering and treating capacity across its asset base to more than 3 billion cubic feet per day (Bcf/d).