Sabine Oil & Gas Holdings Inc. has closed the sale of its subsidiary, Sabine Oil & Gas Corp., to Osaka Gas USA Corp., a subsidiary of Osaka Gas. Acquired acreage is in Harrison, Panola, Rusk, and Upshur counties, among others, totaling 175,000 net acres. Production was 210 MMcfd from about 1,200 wells as of July 2019. Since July 2018, when Osaka Gas acquired 35% working interest in acreage in the east half of acquisition, the wells have been producing at greater than expected volumes.
Sabine boosted production primarily by proving up Haynesville shale in Texas via a combination of longer laterals and enhanced completions and proving up new Cotton Valley sand drilling inventory with longer laterals.
Osaka Gas President Takehiro Honjo commented that “while Osaka Gas has participated in the Freeport LNG liquefaction project and independent power producer projects in the United States, we intend to expand our US upstream business by enhancing our capabilities with Sabine Corp’s excellent operatorship.”
As part of the sale, Osaka Gas USA will retain the current Sabine executive team and employees. Sabine Holdings now has completely divested of all its oil and gas assets since emerging from bankruptcy in August 2016.