Tellurian Updates Timing and Strategy for Future Upstream Acquisitions and Related Financing
March 12 2018 - 7:00AM
Business Wire
Tellurian Inc. (NASDAQ: TELL) and its wholly owned subsidiary
Driftwood Holdings LLC today provided an update on its upstream
acquisition and financing strategy. Tellurian began building its
upstream portfolio in November 2017 and continues its focus on
acquiring core Haynesville shale assets.
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Driftwood Holdings structure 2018
(Graphic: Business Wire)
President and CEO Meg Gentle said, “Tellurian plans to acquire
15 trillion cubic feet (tcf) of natural gas over the project life
as part of our overall integrated strategy for the development of
Driftwood Holdings. We are looking primarily in the Haynesville
shale and are speaking with many producers, but we have no
transaction close to completion at this point. Any asset
acquisition would occur at the Driftwood Holdings level and would
be financed from proceeds of third-party investments in Driftwood
Holdings. We continue to make very good progress in our discussions
with third-party investors, expect to execute agreements in
Driftwood Holdings over the next few months, and be in a position
to close funding of phase one for 11 million tonnes between the
third and fourth quarters of 2018.”
Driftwood Holdings will construct and operate a standalone
U.S.-based integrated liquefied natural gas business. Tellurian
announced in January that it had engaged Goldman Sachs & Co.
LLC (Goldman Sachs) and SG Americas Securities, LLC (Societe
Generale) to serve as financial advisors for Driftwood Holdings
LLC, a wholly owned subsidiary of Tellurian formed to own and
operate Tellurian’s gas producing assets, pipeline assets, and the
Driftwood LNG export facility. Tellurian is offering equity
interests in Driftwood Holdings at a cost of $1,500 per tonne in
exchange for liquefied natural gas at cost.
About Tellurian Inc.
Tellurian was founded by Charif Souki and Martin Houston and is
led by President and CEO Meg Gentle. Tellurian intends to create
value for shareholders by building a low-cost, global natural gas
business, profitably delivering natural gas to customers worldwide.
Tellurian is developing a portfolio of natural gas production, LNG
trading, and infrastructure that includes an ~ 27.6 mtpa LNG
export facility and an associated pipeline. Tellurian is based in
Houston, Texas, and its common stock is listed on the Nasdaq
Capital Market under the symbol “TELL”.
For more information, please visit www.tellurianinc.com.
Follow us on Twitter at twitter.com/TellurianLNG
CAUTIONARY INFORMATION ABOUT FORWARD-LOOKING
STATEMENTS
This press release contains forward-looking statements within
the meaning of U.S. federal securities laws. The words
“anticipate,” “assume,” “believe,” “budget,” “estimate,” “expect,”
“forecast,” “initial,” “intend,” “may,” “plan,” “potential,”
“project,” “should,” “will,” “would,” “proposed”, and similar
expressions are intended to identify forward-looking statements.
Forward-looking statements herein relate to, among other things,
potential future acquisition and financing transactions. These
statements involve a number of known and unknown risks, which may
cause actual results to differ materially from expectations
expressed or implied in the forward-looking statements. These risks
include the matters discussed in Item 1A of Part II of the
Quarterly Report on Form 10-Q for the quarter ended September 30,
2017 filed by Tellurian with the Securities and Exchange Commission
(the “SEC”) on November 9, 2017, and other filings with the SEC,
all of which are incorporated by reference herein. Acquisition and
financing transactions may not occur in the timeline or on the
terms anticipated, may be structured differently than expected, and
may not be available at all. The forward-looking statements in this
press release speak as of the date of this release. Although
Tellurian may from time to time voluntarily update its prior
forward-looking statements, it disclaims any commitment to do so
except as required by securities laws.
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version on businesswire.com: http://www.businesswire.com/news/home/20180312005370/en/
Tellurian Inc.Media:Joi Lecznar,
+1-832-962-4044SVP Public Affairs and
Communicationjoi.lecznar@tellurianinc.comorInvestors:Amit
Marwaha, +1-832-485-2004Director, Investor
Relationsamit.marwaha@tellurianinc.com
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