May 8, 2017

Investment in Natural Gas Development Project in East Texas, U.S.A.

Tokyo Gas Co., Ltd. Tokyo Gas America Ltd.

Tokyo Gas America Ltd., a wholly owned subsidiary of Tokyo Gas Co., Ltd. ("Tokyo Gas") has acquired through its affiliate a 30% equity interest in Castleton Resources LLC ("CR"), a subsidiary of Castleton Commodities International LLC ("CCI") formed to acquire and develop oil and gas assets in the East Texas / Louisiana region with a specific focus on unconventional Haynesville assets. This is the third investment in unconventional upstream assets for Tokyo Gas in the United States and the first equity investment in an upstream company.

CR owns and operates over 160,000 net acres of leasehold in East Texas with access to the Cotton Valley and Haynesville Shale and has a net production of 238 mmcfepd.

Shunjiro Yamashita, President and Chief Executive Officer of Tokyo Gas America Ltd. said, "The Gulf Coast area, specifically East Texas and North Louisiana, is strategically important for Tokyo Gas and we are excited to join forces with CCI and the quality management team at Castleton Resources. The CCI / Tokyo Gas partnership in Castleton Resources creates a well-capitalized vehicle for growth in the region."

Craig Jarchow, President and Chief Executive Officer of Castleton Resources LLC, said, "We welcome this new partnership with Tokyo Gas America Ltd. and remain focused on optimizing and growing our upstream and midstream assets in this region. Castleton Resources is well-positioned to enhance the value of these assets through operational improvements and development of the multiple producing zones in the area, particularly the Haynesville Shale."

Tokyo Gas Group will continue to expand its upstream business and build a global LNG value chain as stated in the Challenge 2020 Vision.

Moelis & Company and SMBC Nikko Securities acted as financial advisors to Tokyo Gas for this transaction. Andrews Kurth Kenyon LLP served as legal advisor to Tokyo Gas in the transaction.

＜Abstract＞

Seller

CCI U.S. Asset Holdings LLC (100% Subsidiary of Castleton Commodities International LLC)

Buyer

TG East Texas Resources LLC

(100% Subsidiary or Tokyo Gas America Ltd.)

Assignment

30% equity interest in Castleton Resources LLC

＜Castleton Resources LLC＞

Establishment

2017/4

Head Office

Houston, TX, U.S.A.

Formation

CCI U.S. Asset Holdings LLC: 70% TG East Texas Resources LLC： 30%

Project

Operate and develop its acreages in East Texas targeting Haynesville and Cotton Valley formation

Net acre

160,000 net acres (660km2)

Daily Production

238 mmcfepd

＜Castleton Commodities International LLC＞

Establishment

2006/12

Head Office

Stamford, CT, U.S.A.

Activities

CCI is a global commodities merchant with an integrated set of operations consisting of physical and financial commodities trading and the ownership, operation, and development of commodities-

related upstream and infrastructure assets.

＜Tokyo Gas America Ltd.＞

Establishment

2013/2

Head Office

Houston, TX, U.S.A.

President

Shunjiro Yamashita

Parental Company

Tokyo Gas Co., Ltd. (100%)

Activities

Include upstream investment, midstream to downstream investments

as exemplified by power generation, natural gas distribution and LNG exportation in North America.

＜Scheme＞

Tokyo Gas Co., Ltd.

Tokyo Gas America Ltd.

Castleton Commodities International LLC

TG East Texas Resources LLC CCI US Asset Holdings LLC

３０％ ７０％

Castleton Resources LLC

[map]

East Texas

Tokyo Gas America Ltd. (Houston)

Tokyo Gas Co. Ltd. published this content on 08 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 08 May 2017 06:07:05 UTC.

Original documenthttp://www.tokyo-gas.co.jp/Press_e/20170508-01e.pdf

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