Porter Hedges Represents Chevron on Two Lithium-Rich Leasehold Acquisitions

Porter Hedges advised Chevron U.S.A. Inc., a subsidiary of Chevron Corporation (NYSE: CVX), on the acquisition of two leasehold acreage positions overlying high-lithium-content brines. The first from TerraVolta Resources, whose chief investor is an affiliate of The Energy & Minerals Group (EMG), and the second from East Texas Natural Resources LLC (ETNR). These acquisitions mark a strategic expansion for Chevron and its first step toward establishing a commercial-scale, domestic lithium business.

The estimated leasehold position includes ~125,000 net acres and is situated across regions where the Smackover Formation is present, specifically spanning Northeast Texas and Southwest Arkansas. Development of this asset will aim to utilize the direct lithium extraction (DLE) process, a set of advanced technologies employed to extract lithium from brines produced from the subsurface. Chevron seeks to deploy this emerging technology, which allows for faster and more efficient production and is expected to have a smaller environmental footprint compared to traditional extraction methods.

Chevron is one of the world’s leading integrated energy companies, producing crude oil and natural gas, manufacturing transportation fuels, lubricants, petrochemicals and additives, and developing technologies that enhance its business and the industry.

For additional details, see the Chevron press release here.