Haynesville- and Cotton Valley-focused Castleton Resources LLC, one of U.S. shale’s headline-makers this past year, hasn’t had a rig drilling for it in two years. “[Acquisitions have] been a better use of capital by a factor of two,” said Craig Jarchow, president and CEO of the Houston-based producer.
In December, it bought Shell Oil Co.’s Haynesville position for an undisclosed sum. In August, it picked up the legendary Terryville Field in north-central Louisiana for $245 million from Range Resources Corp.
Also in August, minority owner Tokyo Gas America Ltd., a subsidiary of Japan’s largest gas utility, Tokyo Gas Co. Ltd., upped its stake from 46% to 70% from Castleton Commodities International LLC (CCI), the international energy trader that formed the E&P in May of 2017.
Castleton Resources, which will be renamed TG Natural Resources LLC, now owns more than 315,000 net acres in East Texas and North Louisiana, producing nearly 500 MMcfe/d net.