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Tokyo Gas Acquires Oil and Gas Assets in Louisiana Through Castleton Resources and Takes Majority Interest in Castleton Resources

Tokyo Gas Co., Ltd. (“Tokyo Gas”) announced that, in the decision made at the meeting of its Board of Directors held on July 29th, 2020, Tokyo Gas America Ltd. (“Tokyo Gas America”), a wholly owned subsidiary of Tokyo Gas, plans to acquire additional oil and gas assets in Louisiana through its ownership interest in Castleton Resources LLC (“Castleton Resources”*1). The transaction is scheduled for completion by Castleton Resources on August 14, 2020.

Castleton Resources will fund the closing of the transaction with additional equity capital from both Tokyo Gas America and CCI. After such funding, Tokyo Gas America will increase its ownership interest in Castleton Resources from 46% to approximately 70%. In recognition of the majority interest held by Tokyo Gas America following such funding, Castleton Resources will be changing its name to “TG Natural Resources LLC” by late March 2021.

This transaction will increase the net production of Castleton Resources from 296 Mmcfepd to 473 Mmcfepd, approximately 1.6 times.

Tokyo Gas will continue to expand its upstream business in North America, one of the most strategic areas globally, as based on the Tokyo Gas Group Management Vision, Compass 2030.

Kazuya Kurimoto, President and Chief Executive Officer of Tokyo Gas America said, “Tokyo Gas America participated in Castleton Resources in May 2017, and have grown steadily with Castleton Resources by acquiring shale and tight sand assets since then. We are pleased that Castleton Resources has joined Tokyo Gas group companies, and with Castleton Resources as the base, we will continue to aim for further business expansion in East Texas and Louisiana.”

Craig Jarchow, President and Chief Executive Officer of Castleton Resources said, “With this transaction, Tokyo Gas America will become our major shareholder. We are very pleased with this outcome as it puts us in a very strong position to continue to build a world-class natural-gas portfolio.”

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