Tellurian Inc active in Louisiana, UK, Australia
Tellurian Investments and Magellan Petroleum announced the close of their merger on Friday, creating the company Tellurian Inc.
Tellurian (ticker: TELL) is the result of a reverse merger, with the private Tellurian Investments acquiring the public Magellan to go public. While Magellan CEO Antoine Lafargue will be CFO of the company, it will mainly be managed by Tellurian Investments executives—with former Cheniere executive Meg Gentle as CEO, and former Cheniere CEO Charif Souki and BG’s former COO Martin Houston, as Tellurian’s co-founders. On February 10, 2017, it merged with Magellan Petroleum and became a public company known as Tellurian Inc., and listed on the Nasdaq under the symbol TELL.
Tellurian is led by President and CEO Meg Gentle. The employees and contractors of Tellurian are experienced industry experts developing low-cost liquefied natural gas (LNG) projects along the United States Gulf Coast. The team will deliver results using a repeatable and simple design, off-the-shelf equipment and multiple production units to enhance reliability. The team has delivered cost-leading LNG projects over more than 50 years. Tellurian intends to deliver low cost LNG to customers from Driftwood LNG, a 26 million tonnes per annum liquefied natural gas export facility northeast of New Orleans, Louisiana. Driftwood is expected to become operational in 2022.
Tellurian Inc. has operations in Louisiana, the UK, and Australia. Tellurian’s Louisiana operations will consist of five LNG plants with processing capacity of 750 MMcf/d. Several companies, including Total and GE, have invested in Tellurian to develop this project.
A pipeline to supply the project is also planned, with an expected capacity of 4 Bcf/d. The project is still in the early stages of FERC approval, and is expected to begin construction in 2018. Tellurian expects the first LNG plant to begin operations in 2022, with all LNG plants online by 2025.
Tellurian also has a 35% interest in two exploration permits in the UK. These permits cover the Horse Hill discovery. This well identified several oil prospects, including the Portland sandstone and the Kimmeridge Clay limestones. Flow testing in March yielded a combined 1688 BOE/D of high quality crude oil. Further appraisal and eventual development is currently being planned.
Tellurian’s Australian activities consist of a 100% interest in an offshore exploration zone in the Timor Sea. This zone is near several large gas fields in the Bonaparte basin. Tellurian conducted seismic studies in 2012 and is currently seeking a “suitable farm-out partner to meet the revised work requirements in exchange for a portion of our working interest in the permit.”
