ExxonMobil Continues to Increase Wolfcamp Position in Permian Basin
September 18 2014 - 5:05PM
Business Wire
Exxon Mobil Corporation (NYSE:XOM) today announced it entered
into a non-monetary exchange agreement with LINN Energy, LLC
(NASDAQ: LINE) to add 17,800 net acres in the Permian Basin to its
U.S. oil and natural gas portfolio managed by subsidiary XTO Energy
Inc.
In the exchange, LINN Energy will receive interest in about 500
net acres from ExxonMobil’s South Belridge Field, near Bakersfield,
California.
In the agreement, ExxonMobil will receive 17,000 net acres in
the Midland Basin core area in west Texas that is most prospective
for horizontal Wolfcamp and Spraberry development, currently
producing about 4,700 oil-equivalent barrels per day. ExxonMobil
will also receive 800 net acres in the New Mexico Delaware Basin.
Both acreage positions will be operated and developed by XTO
Energy.
This is the second non-monetary exchange agreement with LINN
Energy this year. In May, ExxonMobil added nearly 26,000 acres in
the Permian Basin. In that agreement, LINN Energy received a
portion of ExxonMobil’s interest in the Hugoton gas field in Kansas
and Oklahoma.
“We continue to expand our leasehold position in a prolific area
that is poised for profitable volumes growth from multiple horizons
in the Wolfcamp and Spraberry formations,” said Randy Cleveland,
president of XTO Energy. “Our operated-acreage position in the
Midland Basin Wolfcamp core is now around 120,000 net acres. We
continue to increase drilling activity in the play, currently
operating six horizontal rigs, and are very encouraged by initial
well results.”
This agreement extends XTO’s leasehold position across the
entire Permian Basin to more than 1.5 million acres and net
oil-equivalent production to more than 95,000 barrels per day.
LINN Energy will acquire ExxonMobil’s interests in the South
Belridge Field, which currently produces approximately 3,400
barrels of oil per day.
“This transaction further strengthens XTO’s significant presence
in one of the major U.S. growth areas for onshore oil production,”
Cleveland said.
CAUTIONARY STATEMENT
Statements relating to future plans, projections, events or
conditions are forward-looking statements. Actual results,
including project plans, capacities, costs, and schedules and
future production could differ materially due to factors including:
changes in oil or gas prices or other market or economic conditions
affecting the oil and gas industry, including the scope and
duration of economic recessions; changes in law or government
regulation, including tax and environmental requirements; the
outcome of exploration and timely completion of development
programs; the outcome of commercial negotiations; changes in
technical or operating conditions; and other factors discussed
under the heading "Factors Affecting Future Results" in the
“Investors” section of our website and in Item 1A of ExxonMobil's
2012 Form 10-K. We assume no duty to update these statements as of
any future date. The term “project” as used in this release does
not necessarily have the same meaning as under government payment
reporting requirements.
About XTO Energy Inc.
XTO is a leading natural gas and oil producer in the U.S. with
expertise in developing tight gas, shale gas, coal bed methane and
unconventional oil resources. XTO has operations in all major U.S.
producing regions, and holds more than 11 million acres.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and
gas company, uses technology and innovation to help meet the
world’s growing energy needs. ExxonMobil holds an industry-leading
inventory of resources, is the largest refiner and marketer of
petroleum products, and its chemical company is one of the largest
in the world. Follow ExxonMobil on Twitter at
www.twitter.com/exxonmobil.
ExxonMobilMedia Relations, 972-444-1107
Exxon Mobil (NYSE:XOM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Exxon Mobil (NYSE:XOM)
Historical Stock Chart
From Apr 2023 to Apr 2024