Tokyo Gas subsidiary buying Rockcliff Energy

A subsidiary of Tokyo Gas will acquire Houston-based Rockcliff Energy as it expands its shale gas business in North America.

TG Natural Resources (TGNR) will spend $2.7 billion to acquire all the shares Rockcliff Energy, a natural gas development and production company in Texas and Louisiana in the U.S., from Quantum Energy Partners.

With this stock acquisition, the production capacity of natural gas and natural gas liquids held by TGNR will be approximately 330 million cubic feet/day.

“With the demand for natural gas expected to increase in the future, including the construction of new LNG export terminals in the United States, the Tokyo Gas Group is expanding its shale gas business in North America in its medium-term management plan, Compass Transformation 23-25,” the company said in a news release. “The company aims to expand, and through this stock acquisition, it expects to build a revenue base overseas.”

Rockcliff is an upstream natural gas company focused on developing the East Texas Haynesville shale. With field headquarters in Longview, Texas, the company has a footprint in five Texas counties, operating more than 200,000 net acres with more than 1.3 Bcf/d of gross operated natural gas production.

“We are extremely proud of the business we have built at Rockcliff over the past eight years, becoming one of the premier private natural gas companies in the United States,” said Alan Smith, CEO of Rockcliff. “The amazing growth we have been able to achieve, taking gross production from approximately 100 MMcf/d at our initial acquisitions in 2017 to over 1.3 Bcf/d today, is a testament to the tireless efforts and perseverance of the entire Rockcliff team. The continued support of our partners at Quantum – who have shared our vision from day one to position Rockliff as an industry-leading natural gas producer – has played an essential role in our exceptional growth and commercial success.”