TG Natural Resources acquires Haynesville shale-focused Rockcliff Energy for $2.7 billion

TG Natural Resources LLC (TGNR) has agreed to acquire Rockcliff Energy II LLC, Houston, a portfolio company of Quantum Energy Partners, for $2.7 billion.

Rockcliff is focused on developing the East Texas Haynesville shale. The company holds assets in five Texas counties, operating more than 200,000 net acres with more than 1.3 bcf/d of gross operated natural gas production. The company acquired assets in 2017 from Samson Resources II LLC (OGJ Online, Aug. 2, 2017).

TGNR is jointly owned by TG East Texas Resources LLC, a wholly owned subsidiary of Tokyo Gas America, and CCI US Asset Holdings LLC, a wholly owned subsidiary of Castleton Commodities International LLC.

“In May 2017, we invested in Castleton Resources LLC, the predecessor of TGNR, and in August 2020, we made Castleton Resources LLC a subsidiary. The Texas and Louisiana areas where TGNR owns assets are in close proximity to new LNG export terminals where future gas demand is expected to increase, and TGNR has been seeking to acquire superior assets in these areas,” said Akira Inukai, president, and chief executive officer of Tokyo Gas America.

Rockcliff’s assets, he said, are adjacent to the TGNR assets and align with the company’s overall growth strategy,

The deal is expected to close by yearend, subject to customary closing conditions and regulatory approvals.