HOUSTON, Dec. 2, 2019 /PRNewswire/ -- Sabine Oil & Gas Holdings, Inc. ("Sabine Holdings") is pleased to announce today that it has closed the sale of its subsidiary, Sabine Oil & Gas Corporation ("Sabine Corp"), to Osaka Gas USA Corporation ("Osaka Gas USA"), a subsidiary of Osaka Gas. As part of the sale, Osaka Gas USA will retain the current Sabine executive team and employees.
Sabine Holdings has completely divested of all its oil and gas assets since emerging from bankruptcy in August 2016. East Texas production and reserves increased significantly primarily by proving up the Haynesville play in Texas with a combination of longer laterals and enhanced completions and proving up new Cotton Valley drilling inventory with longer laterals.
Doug Krenek, Sabine Holdings' President and CEO commented, "I am very proud of what the management team and employees of Sabine accomplished in a three-year period given a very challenging market. We appreciate Osaka Gas USA recognizing our exceptional talent and acquiring it along with our assets. We look forward to helping Osaka Gas USA realize its plans to develop the Sabine assets and use our management team and employees to be a platform for growth in the United States. I am also very thankful for having had the opportunity to work with a very seasoned board consisting of Mark Womble, Steve Farris, William Hahne and Mike Wichterich."
Osaka Gas President Takehiro Honjo also commented, "I am delighted to welcome Sabine Corp with outstanding talent and expertise in US shale gas development to our family. While Osaka Gas has participated in the Freeport LNG liquefaction project and IPP projects in the United States, we intend to expand our US upstream business by enhancing our capabilities with Sabine Corp's excellent operatorship. I very much look forward to working with the management team and employees of Sabine Corp led by Mr. Doug Krenek to achieve sustainable growth of our upstream business. Through our business activities, we aim to contribute to the US society as a corporate citizen that is highly involved in energy business."
Barclays acted as exclusive financial advisor to Sabine in the transaction.
Hunton Andrews Kurth LLP advised Sabine Oil & Gas Holdings in connection with the transaction with a team led by corporate partners John Clutterbuck and Phil Haines.