Thailand: Banpu acquires fifth US shale gas asset for $210m

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Thailand’s biggest coal miner and exporter Banpu Pcl is acquiring a US shale gas portfolio worth $210 million, its fifth such overseas investment play.

Banpu signed a purchase and sale agreement to acquire an operatorship position and gas portfolio in the Northeast Marcellus shale gas play of Pennsylvania.

This agreement represents Banpu’s fifth investment in the US shale gas business in line with its expansion strategy to acquire interests in cash-generating assets, according to its filing to the Stock Exchange of Thailand on Monday.

Banpu’s chief executive Somruedee Chaimongkol said, this acquisition provides Banpu nearly 80 per cent of working interest in 112 wells with the net production interest of 100 million cubic feet per day.

The shale gas resource has proven reserves of 414 billion cubic feet over 32,350 acres, which will bolster Banpu’s position as a major player in the Marcellus shale area.

Previously, Banpu acquired a 29.4-per-cent stake in the Chaffee Corners Joint Exploration Agreement (JEA) in April last year.  Its net interest in the Chaffee Corners JEA is equivalent to proven reserves of 156 billion cubic feet of dry natural gas.

The CEO told local media that its gas sale volumes was around 21 million cubic feet per day last year and most of them served the US domestic demand.

Banpu is aggressively diversifying its business into upstream and clean energy businesses. Last month, it announced the investment of S$75 million ($55.6 million) in Singaporean photovoltaic (PV) firm Sunreap, backed by Goldman Sachs. It targets to build 300 MW of PV capacity over the next five years.

Also read:

Thai coal miner Banpu takes 25.7% in Singapore’s Sunseap Group for $56m

Thailand: Banpu commits $210m as investment outlay for this year

 

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.