Banpu Public Company Limited (BANPU) has announced that BKV Corporation (BKV), BANPU’s subsidiary, has accelerated the closing of the Barnett shale transaction to 1st October 2020, from the previously arranged of 31st December 2020.
In response to the recovery of the gas price in the U.S. as signaled by the resilient domestic demand, the acceleration of the closing would immediately increase the scale of BANPU US shale gas operations with immediate realization of additional contribution from Barnett operational results since 1st September 2019.
This acquisition will provide synergies around technology integration with BANPU existing portfolio in the U.S. and diversification benefit into the epicenter of natural gas demand growth in the US.
Out of the total acquisition price of $570 million (approximately THB 18,650 million), BANPU has already deposited $170 million. The remaining closing payment is subject to customary purchase price adjustments. and the cash flow from operation of Barnett asset from 1st September 2019, which will be deducted from investment value upon the closing date of transaction. BANPU will officially notify SET once the transaction is completed.