HOUSTON, Texas, August 3, 2020 -- Castleton Resources LLC (“Castleton Resources” or the “Company”) announced today that it has entered into a definitive agreement to acquire the Terryville upstream assets in Northern Louisiana from subsidiaries of Range Resources Corporation (”Range”) for $245 million plus contingent payments that are a function of commodity prices. Under the terms of the agreement, Range will retain certain midstream commitments through their remaining term.

Castleton Resources is owned by Castleton Commodities International LLC (“CCI”) and Tokyo Gas America Ltd., a wholly owned subsidiary of Tokyo Gas Co., Ltd. Tokyo Gas America Ltd. will increase its ownership in Castleton Resources from 46% to approximately 70% when the acquisition closes, with the balance to be held by CCI.

Pro forma for the Terryville acquisition, Castleton Resources will own over 315,000 net acres of leasehold in East Texas and Northern Louisiana with total daily net production of nearly 500 MMcfe/d.

Craig Jarchow, President and CEO of Castleton Resources, said,

We are very pleased to be able to purchase quality assets at a low-point in the commodity-price cycle. The Company is well-positioned to enhance the value of these assets through further operational enhancements, among other activities. We remain focused on strategically growing and diversifying our upstream and midstream assets, and broadening our portfolio with attractive opportunities that complement our long-term business strategy.

Kazuya Kurimoto, President and Chief Executive Officer of Tokyo Gas America Ltd. said, “Tokyo Gas America participated in Castleton Resources in May 2017, and has grown steadily with Castleton Resources by acquiring shale and tight sand assets since then. We are pleased that Castleton Resources will join Tokyo Gas group companies, and with Castleton Resources as the base, we will continue to aim for further business expansion in East Texas and Louisiana.”

The transaction is scheduled to close on August 14, 2020.

Castleton Resources will change its name to “TG Natural Resources LLC” by late March 2021.

Greenhill acted as M&A advisor and Kirkland & Ellis served as legal advisor to Castleton Resources in this transaction. K&L Gates acted as legal advisor to Tokyo Gas America Ltd. Bracewell LLP acted as legal advisor to CCI.


Castleton Resources is one of the largest producers in the Ark-La-Tex region of East Texas and Northern Louisiana. The company is private and is co-owned by subsidiaries of Tokyo Gas America and Castleton Commodities International. Please visit Castleton Resources’ website for more information: http://www.castletonresources.com/

CCI is a global energy commodity merchant with integrated businesses focused on marketing, merchandising, and trading commodities, and the ownership, operation and development of commodities-related infrastructure and upstream assets. Please visit CCI’s website for more information: http://www.cci.com/

Tokyo Gas America Ltd. was established on February 1, 2013 and is fully owned by Tokyo Gas Co., Ltd. The company develops wide-ranging businesses that include renewable power generation, upstream operations such as gas field development, midstream to downstream operations as exemplified by power generation, natural gas distribution, LNG exportation and natural gas trading in North America. Please visit Tokyo Gas America’s website for more information: http://www.tgamerica.com/

Tokyo Gas Co., Ltd. is the largest gas utility company in Japan. Founded October 1, 1885, the company supplies gas and power to 11 million customers in the greater Tokyo area. Tokyo Gas has developed a comprehensive range of business that spans from upstream resource development and procurement to gas transportation and sales. Please visit Tokyo Gas’ website for more information: http://www.tokyo-gas.co.jp/en/


Hill+Knowlton Strategies
Brian R. Brooks
+1 (713) 752-1901