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Japanese Osaka Gas Has Acquired US Based Sabine Oil & Gas Corporation

Osaka Gas has entered right into a definitive agreement with Sabine Oil & Gas Holdings to acquire 100% of the outstanding shares of its subsidiary, Sabine Oil & Gas Corporation “. Upon receiving required governmental permits and transaction closing, this marks the first time that a Japanese company purchases a U.S. based shale gas developer. As this acquisition has magnified Osaka Gas’ energy business portfolio in North America, the company intends to continue creating its three U.S. core companies consisting of Freeport LNG liquefaction venture, IPP projects, and Sabine’s shale gas project, to expand its income for future.

Sabine holds acreage in East Texas located in Harrison, Panola, Rusk, and Upshur counties, among others, totaling 175,000 net acres which are producing shale gas in the amount of 210 MMcfed with approximately 1,200 wells at present, showing a big drilling stock within the Haynesville and Cotton Valley formations. Since July 2018, when Osaka Gas acquired 35% of the working interest in acreage within the east half of the entire asset area being developed by Sabine, the wells have been producing higher than the expected volumes, producing stable cash flow. This acquisition of the outstanding shares has given Osaka Gas the entire acreage place of Sabine.

Through this acquisition, Osaka Gas has additionally gained operatorship of the upstream business along with Sabine’s excellent management and operational capabilities. Integration of Sabine into Osaka Gas’ current shale gas development enterprise will improve the productivity and sustainability of the corporate’s U.S. upstream business growth.

Beneath its long-term management vision “Going Forward, Past Borders 2030,” which focuses on abroad power markets as one of many progress areas, the Daigas Group goals to hasten its endeavor to broaden its energy businesses globally alongside the vitality worth chain from upstream to mid- and downstream companies including LNG buying and selling.

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