Osaka Gas to Acquire U.S. Shale Gas Developer

Economy

Osaka, July 29 (Jiji Press)--Osaka Gas Co. <9532> said Monday that it will acquire Sabine Oil & Gas Corp., a U.S. shale gas developer, for 610 million dollars.

It will be the first time for a Japanese company to take full control of a U.S. shale gas company, according to Osaka Gas.

The acquisition will give Osaka Gas rights in Sabine's entire shale gas mining area, covering 175,000 net acres, in eastern Texas.

Osaka Gas expects shale gas operations to be one of its core businesses in the United States, besides liquefied natural gas development and power generation.

Last year, the company acquired a partial interest in Sabine's mining area. The planned acquisition will lift its annual gas production in eastern Texas to 1.7 million tons in terms of LNG. It plans to sell the gas locally.

[Copyright The Jiji Press, Ltd.]

Jiji Press