Osaka Gas participates in a shale gas and liquids development project in Texas, USA
Osaka Gas has decided to participate in Pearsall shale gas and liquids project in the state of Texas in the United States. Through a purchase and sale agreement with Cabot Oil & Gas Corporation concluded in Houston today, the company will acquire a 35% working interest in an acreage being developed by Cabot for a total consideration of approximately US$250 million. Closing of the deal is expected to take place early next week.
Acquisition of upstream energy interest has been a focal point in the international energy business activities of Osaka Gas. This will be the first shale gas and liquids project for Osaka Gas in the United States, following the company’s equity participation in a shale gas project in British Columbia in Canada last June. Osaka Gas intends to develop its activities further along gas value chain.
Under the term of the joint venture agreement between the two companies, Cabot will drill several hundred wells in the Pearsall Shale acre in Eagle Ford Region for the next 30 years. Natural gas, condensate and natural gas liquids to be produced in the project will be marketed in the United States. The operation of the joint venture will be taken care of by Cabot which has rich expertise and experience in shale gas and liquids development projects in the United States.
1. Outline of the Pearsall shale gas/liquids development project
2. Outline of PSA
||South Texas (Eagle Ford region)
||Cabot (65% Operator) and OG (35%)
|Formation to be developed:
||natural gas, condensate, and NGL
||Cabot Oil & Gas Corporation
||Osaka Gas Resources America Corporation
(a US entity, a 100% subsidiary of Osaka Gas )
||35% interest associated with formations beneath Buda formation located in the subject acreage
Source: Energy Information Administration updated:March 10,2010
Osaka Gas is a leading energy company based in Osaka, Japan, engaged in a broad range of energy services including natural gas supply, power generation and LPG supply. The company is also active in international energy businesses in North America, Europe, and Australia.
Cabot Oil & Gas Corporation, headquartered in Houston, Texas is a leading independent natural gas producer with its entire resource base located in the continental United States. For additional information, visit the Company’s Internet homepage at www.cabotog.com/