Tellurian Inc(NASDAQ:TELL ) stock lost over 16.3% on December 8th, 2017 (As of 12:37PM EST; Source: Google finance). They priced an underwritten public offering of 10 million shares of its common stock at $10.00 per share leading to proceeds of $100.0 million. This pricing led to the stock crash.
On the other hand, the group made an agreement with Rockcliff Energy to buy natural gas producing assets and undeveloped acreage in northern Louisiana for $85.1 million, subject to customary adjustments. The assets include over four million cubic feet per day of natural gas production, and over 1.3 Tcf of gas resource, and 138 drilling locations. The group intends to produce and delivere to market for an estimated of $2.25 per mmBtu. The assets are 100% held by production and 92% operated, enabling the group to control the pace of development for its multi-year drilling inventory. This Acquisition of natural gas producing acreage in the core of the Haynesville would boost the group’s portfolio of assets and aiming to produce LNG for a cost of $3.00 per mmBtu, FOB U.S. Gulf Coast, when Driftwood LNG begins operations in 2022.
The group continued to build their global natural gas business during the third quarter of 2017. They engaged with Bechtel Oil, Gas and Chemicals, for conducting further engineering for the Driftwood LNG facility, intended to advance engineering to over 20% by 2018.
Driftwood LNG comprises 20 liquefaction units, with each one having the potential to produce up to 1.38 million tonnes per annum (mtpa) of LNG. They would use the Liquefaction technology from Chart Industries’ proprietary Integrated Pre-cooled Single Mixed Refrigerant (IPSMR®) process as well as Twenty GE refrigeration compressors, each driven by GE aero derivative natural gas turbines. Driftwood LNG includes three 235,000 cubic meter, full containment LNG storage tanks as well as Three marine loading berths
The group also made a six-month charter contract with Maran Gas Maritime Inc. for a liquefied natural gas (LNG) vessel, enabling participation in the LNG marketplace.