Tellurian Led the Upstream Gainers Last Week
In this part, we’ll look at the top weekly percentage gainers from the oil and gas production sector in the US for the week ending September 8, 2017. For our analysis, we have used the oil and gas producers with market capitalizations of greater than $100 million and an average volume greater than 100,000 shares last week.
n the week ending September 8, 2017, Tellurian (TELL) rose from $9.20 to $10.20, an increase of ~11%. Most of the weekly gain for Tellurian came on September 6, 2017, after it announced an agreement with a private seller to acquire producing and undeveloped natural gas assets for ~$85 million. These assets, which consist of 9,200 net acres, are located in Louisiana and have ~1.3 Tcf (trillion cubic feet) of natural gas resource potential. This transaction is expected to close in 4Q17.
While commenting on the acquisition benefits, Tellurian’s president and CEO, Meg Gentle, said that the “Acquisition of natural gas producing assets is integral to our growing business. We expect our full cycle cost of production and transport to markets will be approximately $2.25 per MMBtu, which represents a significant savings to natural gas we will purchase at Henry Hub and other regional liquidity points. Platts LNG Daily reported the price of LNG in the Gulf of Mexico was $5.67 per MMBtu yesterday, providing the price signal to construct additional liquefaction capacity”…