Japanese Company Buys Eagle Ford Assets

Deal Includes 34,000 Acres in Webb & LaSalle Counties
Japanese Company Buys Eagle Ford Assets

Japanese Company Buys Eagle Ford Assets

Japan’s biggest city gas supplier has purchased a stake in the Eagle Ford Shale.

Related: Japan Eyes Eagle Ford Natural Gas

Tokyo Gas Co. announced on Tuesday that they have closed on their acquisition of ~25% interest in Eagle Ford shale gas assets from the VirTex group.

The 34,000 acre assets are located in the Webb and La Salle counties of south Texas.

According to a Japanese news source, the deal was worth more than 5 billion yen ($48 million), but the company press release indicates the investment will be higher.

“Tokyo Gas estimates that the net capital required to be some 75 million US dollars assuming the natural gas production for Tokyo Gas could average annual 0.20 million tons in the middle term, which depends on the pace of development. The produced gas is to be marketed in the US market.”

In June 2015, a delegation from the Consulate General of Japan toured Texas gas facilities in Freeport, Houston, Moulton and San Antonio. Many suspect that Japanese producers are looking to the Eagle Ford as a potential source of much needed natural gas since a 2011 earthquake wrecked a great deal of the country’s energy infrastructure.

This deal marks the the second time that Tokyo Gas has invested in U.S. shale. In 2013, the company bought another gas stake in the Barnett shale for $485 million.

Read more at Tokyo-Gas.co.jp

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Elizabeth Alford

Elizabeth Alford

Elizabeth Alford writes on significant news developments in the Eagle Ford oil and gas play taking place across South TX. She is a freelance writer with an extensive communications, PR, and staff writing background.
Elizabeth Alford

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