07:56 AM EDT, 05/29/2024 (MT Newswires) -- Tellurian (TELL) said Wednesday that it has agreed to sell its integrated upstream assets to Aethon Energy Management LLC for $260 million.

The acquisition comes alongside a Heads of Agreement for Aethon to buy two million tons per annum of liquified natural gas from Tellurian's Driftwood LNG plant, contemplating that the parties will negotiate a 20-year offtake agreement.

The company plans to use the proceeds to reduce borrowings and for general corporate purposes. The transaction is expected to close during Q2.

Tellurian's share price rose more than 12% in recent pre-market activity on Wednesday.

Price: 0.6100, Change: +0.05, Percent Change: +8.77