Exxon Mobil to Buy Permian Basin Land From Bass Family for More Than $5.6 Billion
January 17 2017 - 10:17AM
Dow Jones News
By Austen Hufford
Exxon Mobil Corp. said Tuesday that it was buying land in the
much sought after Permian Basin region from the Bass family for
$5.6 billion in stock and up to $1 billion in contingent cash
payments.
Exxon Mobil is buying companies owned by the oil family closely
associated with Fort Worth, Texas, that have an estimated potential
for 3.4 billion barrels of oil equivalent production, including in
New Mexico's Delaware Basin, an area Exxon Mobil called a "highly
prolific, oil-prone" section of the Permian Basin.
Companies have been paying never-before-seen prices for
drillable acres in the Permian Basin. Players in the space say land
there has layers of oil-bearing rock which are stacked on top of
each other and hold substantial oil reserves that can be tapped in
tandem, making each acre more valuable than in a typical oil
field.
Exxon Mobil said it can use its technological expertise to drill
the longest lateral wells in the Basin which can reduce development
costs and increase the proportion of estimated reserve that are
turned into final products.
The acquired companies hold about 275,000 acres, most of which
is in the Permian Basin.
After a prolonged slump, energy prices began to recover and
stabilize last year.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
January 17, 2017 10:02 ET (15:02 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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