HOUSTON, TX–(Marketwired – November 09, 2017) – Tellurian Inc. (Tellurian) (NASDAQ: TELL) continued to build its global natural gas business during the third quarter of 2017. Notably Tellurian:
- Engaged Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”) to conduct additional engineering for the Driftwood LNG facility, intended to advance engineering to approximately 20% by 2018.
- Agreed to purchase natural gas producing assets and undeveloped acreage in northern Louisiana from Rockcliff Energy Operating LLC (“Rockcliff”), including approximately 4 million cubic feet per day of natural gas production, approximately 1.3 Tcf of gas resource, and approximately 138 drilling locations, which are able to be produced and delivered to market for an estimated $2.25 per mmBtu, providing Tellurian access to low-cost supply.
- Arranged a six-month charter contract with Maran Gas Maritime Inc. for a liquefied natural gas (LNG) vessel, allowing for participation in the LNG marketplace.
Tellurian reported a net loss of approximately $22.9 million, or $0.12 per share (basic and diluted), for the three months ended September 30, 2017.
President and CEO Meg Gentle said, “Tellurian will have access to gas supply for a low cost of approximately $2.25 per mmBtu and the capability to deliver LNG to the global market. We are putting in place the pieces of an integrated, global gas business, and welcome customers to become our partners in the ~27.6 mtpa Driftwood Project. We look forward to executing the EPC agreement with Bechtel and confirming our regulatory schedule with the FERC.”
|Estimated Driftwood Project timeline|
|LSTK EPC contract||Sign – Q4/17|
|Rockcliff natural gas asset acquisition closing||Q4/17|
|LNG sales and purchase agreements||1H 2018|
|FERC construction authorization||Mid-2018|
|Liquefaction project financial close||Mid-2018|
Q3 2017 Results
Tellurian reported a net loss attributable to common stockholders of approximately $22.9 million for the three months ended September 30, 2017. The net loss includes (i) approximately $8.8 million of development expenses, primarily associated with the development of the Driftwood Project and related regulatory filings, and (ii) approximately $17.3 million of general and administrative expenses.
Total cash disbursements used in operating activities for the quarter were approximately $14.1 million, most of which was tied to Driftwood project development activity.
As of September 30, 2017, Tellurian had approximately $138 million of cash and cash equivalents.
About Tellurian Inc.
Tellurian was founded by Charif Souki and Martin Houston and is led by President and CEO Meg Gentle. Tellurian intends to create value for shareholders by building a low-cost, global natural gas business, profitability delivering natural gas to customers worldwide. Tellurian is developing a portfolio of natural gas production, LNG trading, and infrastructure that includes a ~ 27.6 mtpa LNG export facility and an associated pipeline. Tellurian is based in Houston, Texas, and its common stock is listed on the Nasdaq Capital Market under the symbol “TELL”.