Sidley represented Tellurian Production LLC (TPC), a wholly owned subsidiary of Tellurian Inc. (Tellurian), in an agreement for TPC to purchase natural gas assets from privately held EnSight IV Energy Partners, LLC and EnSight Haynesville Partners, LLC (collectively, EnSight), located in the Haynesville Shale. The effective date of the transaction is August 1, 2022. The purchase price is $125 million, subject to customary closing adjustments, and a contingent payment of $7.5 million which is based on the price of natural gas and may be payable in March 2023 under certain conditions.
The EnSight assets currently have net production of ~45 million cubic feet of natural gas per day (MMcf/d) (100% natural gas), and cover approximately 5,000 net acres in the core of the Haynesville Shale in DeSoto, Bossier, Caddo, and Webster Parishes in Louisiana.
The Sidley team was led by partners Mark Metts (M&A) and Katy L. Lukaszewski (Energy, Transportation and Infrastructure), with support from managing associate John Brannan and associate Sean M. Valentine (both Energy, Transportation and Infrastructure). Additional support was provided by partner Zackary Pullin, associate Aaron S. Mitchell (both Tax), and partner Heather M. Palmer (Environmental).
