(Reuters) – Aethon Energy will acquire the upstream assets of Tellurian (NYSE:) for $260 million and will purchase two million tons of liquefied natural gas (LNG) per year from its Driftwood LNG plant, the companies said on Wednesday.
Shares of Tellurian were up 6.1% in premarket trading.
Earlier this month, Reuters reported that US LNG developer Tellurian had sent home more than a dozen workers from its gas production business amid sale talks.
Tellurian said Wednesday it will use proceeds from the deal to reduce borrowing and for general corporate purposes.
The deal is expected to close in the second quarter.