Centalion Acquires 72,000 Net Acres of Natural Gas Assets in the U.S. Haynesville

en.Wedoany.com Reported - On October 5, Centalion Group completed the acquisition of a package of natural gas upstream and midstream assets in the Haynesville region of Texas and Louisiana, USA, from Silver Hill Energy Partners. The transaction involves approximately 72,000 net acres of mineral rights in the core development area of Haynesville and Bossier, with current net natural gas production of approximately 300 million cubic feet per day, and includes approximately 300 operator-controlled future development well locations. The transaction value is approximately USD 1.5 billion.

Silver Hill assembled this asset portfolio through multiple acquisitions from late 2021 to mid-2023, and operated up to 4 drilling rigs simultaneously during peak development. During the operational period, natural gas production from the assets increased from less than 100 million cubic feet per day to more than 300 million cubic feet per day, while retaining hundreds of undeveloped well locations, providing inventory for continued drilling and production growth.

In addition to producing wells and undeveloped acreage, the acquisition scope also includes midstream infrastructure such as natural gas gathering. Silver Hill had previously expanded gathering and produced water disposal capacity, and established long-term natural gas gathering and transportation agreements, providing supporting conditions for the transportation of incremental production. The assets are located in the heart of the U.S. Gulf Coast natural gas market, with access to local industrial consumption, power generation, and LNG export demand nodes.

Following the completion of the transaction, Centalion will continue to partner with Western Natural Resources to operate and develop the related assets. The two parties plan to execute a continuous drilling development program and further expand the scale of the Haynesville platform. Centalion had already participated in Haynesville natural gas asset investments through Western Natural Resources earlier this year, and this acquisition further expands its upstream production and midstream infrastructure scale in the basin.

On a pro forma basis following the integration of these assets, Centalion's asset scale in the Haynesville will place it among the large private operators in the region. The incremental natural gas production will be integrated with the company's existing Gulf Coast natural gas marketing, logistics, and LNG operations. Future production growth will primarily depend on the drilling pace of approximately 300 development well locations, midstream processing and transportation capacity, and the execution of long-term transportation contracts.