ExxonMobil more than doubles Marcellus holdings

By OGJ editors
HOUSTON, June 10
-- An ExxonMobil Corp. subsidiary’s $1.69 billion acquisition of two private companies with Marcellus shale assets deepens the major’s commitment to unconventional resource development.

The deal to acquire Phillips Resources Inc., Warrendale, Pa., and its natural gas exploration affiliate, TWP Inc., more than doubles ExxonMobil’s Marcellus shale position in the increasingly active northern Appalachian basin.

Phillips Resources and TWP have a combined 317,000 net acres in the Marcellus in southwestern Pennsylvania. Their combined yearend 2010 proved reserves were 228 bcf of gas, and they currently produce about 50 MMcfd net of gas.

Phillips Resources owns or operates more than 4,000 producing gas wells in Pennsylvania, according to its web site. To date, the company has operated or participated in the drilling of more than 50 Marcellus shale wells, both vertical and horizontal.

ExxonMobil subsidiary XTO Energy Inc., Fort Worth, will manage the newly acquired properties from its Appalachian division based in western Pennsylvania.

The XTO acquisition in 2010, an all-stock deal valued at the time it was announced at $41 billion, represented a major commitment by ExxonMobil to unconventional oil and gas development (OGJ, Dec. 21, 2009, p. 31).

With XTO, ExxonMobil added 60 tcf of gas equivalent to its resource base, more than 2.9 bcfd of gas equivalent production, and 5 million net acres to its leasehold.

The XTO acquisition included properties in the Haynesville-Bossier, Barnett, Fayetteville, Woodford, and Marcellus shale gas plays; the Bakken shale oil play and several Permian basin fields; the San Juan basin and other Rocky Mountain coalbed methane plays; and the Freestone trend of East Texas and other tight gas properties.

Separately from the XTO acquisition, ExxonMobil last year acquired 36,000 net acres in the Horn River basin shale gas play in Canada and 67,000 net acres in the Haynesville-Bossier play.

The merger includes about 200 Phillips companies employees. It is ExxonMobil’s intent to retain them as employees, Jeff Neu, XTO Energy public and government affairs advisor, told OGJ.

Neu said, “We believe the mergers will create significant value by leveraging the regional synergies in upstream operations and acreage holdings between XTO Energy Inc. and the Phillips companies.”

Related Articles

BHI: US rig count forced down by large losses in Texas

12/12/2014 Forced down by large losses in Texas and specifically the Permian basin, the US drilling rig count plummeted 27 units to settle at 1,893 rigs worki...

More West Texas gathering, processing to come onstream

12/09/2014 EagleClaw Midstream Services LLC, Midland, Tex., has bought natural gas gathering and processing in Reeves County, Tex. The company declined to ide...

ConocoPhillips slashes 2015 capital budget

12/08/2014 ConocoPhillips has elected to reduce its 2015 capital budget to $13.5 billion, down 20% compared with this year’s budget. The news comes on the hee...

Plains All American to expand Cactus pipeline takeaway capacity

11/25/2014 Plains All American Pipeline LP (PAA) plans to provide additional pumps to increase the takeaway capacity of the Cactus pipeline in response to hig...

Encana completes acquisition of Athlon Energy

11/13/2014 Encana Corp. now holds a premier 140,000 net acre spread in the oil-rich Permian basin after successfully acquiring Fort Worth-based Athlon Energy ...

BHI: US rig count down slightly during October, past week

11/07/2014

The US drilling rig count dropped 4 units to settle at 1,925 rigs working during the week ended Nov. 7, Baker Hughes Inc. reported.

PAA to buy BridgeTex interest from Oxy in $1.075 billion deal

11/06/2014 Plains All American Pipeline LP (PAA) and Plains GP Holdings LP have signed an agreement with Occidental Petroleum Corp. to purchase Oxy’s 50% inte...

Lone Star begins construction on third Mont Belvieu frac unit

11/06/2014 Lone Star NGL LLC, a joint venture of Energy Transfer Partners LP (70%) and Regency Energy Partners LP (30%), both of Dallas, has begun constructio...

PNR, Reliance seek divestment of Eagle Ford midstream business

11/04/2014 Pioneer Natural Resources Co. (PNR), Dallas, and Reliance Holding USA Inc. are pursuing the divestment of their Eagle Ford shale (EFS) Midstream bu...

White Papers

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Available Webcasts



The Future of US Refining

When Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

When Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST



On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected