Castleton Resources LLC has agreed to acquire the Terryville upstream assets in Northern Louisiana from Range Resources Corp. subsidiaries for $245 million plus the potential for $90 million in additional proceeds contingent on future commodity prices. At the time of the agreement, the assets were producing 160 MMcfed, Range said as part of its second quarter report released Aug. 3.
Under the terms of the agreement, Range will retain certain midstream commitments through their remaining term. Range said it intends to use $28.5 million of the sale proceeds to reduce a portion of the retained commitments.
Pro forma for the Terryville acquisition, Castleton Resources will own over 315,000 net acres of leasehold in East Texas and Northern Louisiana with total daily net production of about 500 MMcfed. In December 2019, the company closed a deal to acquire the East Texas and North Louisiana Haynesville shale assets of BG US Production Co. LLC, a Royal Dutch Shell plc subsidiary. (OGJ Online, Dec. 30, 2019).
Castleton Resources is owned by Castleton Commodities International LLC (CCI) and Tokyo Gas America Ltd., a wholly owned subsidiary of Tokyo Gas Co. Ltd. Tokyo Gas America Ltd. will increase its ownership in Castleton Resources to 70% from 46% when the acquisition closes—expected on Aug. 14 with an effective date of Feb. 1—with the balance to be held by CCI.
Castleton Resources will change its name to TG Natural Resources LLC by late March 2021.