Blackstone and its affiliates have bought Royal Dutch Shell’s stake in the Haynesville Shale for $1.2 billion.
Blackstone acquired the leases on more than 107,000 acres through Vine Oil & Gas LP, an exploration-and-production company based in Dallas, and affiliate Blackstone Energy Partners.
Blackstone formed Vine to be a “significant, independent shale development company.”
The deal must be approved by regulators and is expected to close in the fourth quarter of 2014.
Blackstone has invested around $7 billion in the energy sector. The publicly traded firm manages close to $300 billion in assets.
Some experts have said Blackstone’s investment could prompt additional activity in the massive natural gas formation. The shale’s discovery sparked a land rush by energy companies hoping to take advantage of high natural gas prices, which at one point reached $13 per thousand cubic feet, more than three times the current price.