Castleton Resources enters into agreement for the acquisition of Terryville upstream assets in Northern Louisiana

Castleton Resources LLC has entered into a definitive agreement to acquire the Terryville upstream assets in Northern Louisiana from subsidiaries of Range Resources Corporation for US$245 million plus contingent payments that are a function of commodity prices. Under the terms of the agreement, Range will retain certain midstream commitments through their remaining term.

Castleton Resources is owned by Castleton Commodities International LLC (CCI) and Tokyo Gas America Ltd., a wholly-owned subsidiary of Tokyo Gas Co., Ltd. Tokyo Gas America Ltd. will increase its ownership in Castleton Resources from 46% to approximately 70% when the acquisition closes, with the balance to be held by CCI.

Pro forma for the Terryville acquisition, Castleton Resources will own over 315,000 net acres of leasehold in East Texas and Northern Louisiana with total daily net production of nearly 500 MMcfe/d.

The transaction is scheduled to close on August 14, 2020.

Castleton Resources will change its name to TG Natural Resources LLC by late March 2021.

Greenhill acted as M&A advisor and Kirkland & Ellis served as legal advisor to Castleton Resources in this transaction. K&L Gates acted as legal advisor to Tokyo Gas America Ltd. Bracewell LLP acted as legal advisor to CCI.