ExxonMobil Corp.’s XTO Energy Inc. subsidiary will buy Woodford shale gas assets in Tishomingo field in south-central Oklahoma from BNK Petroleum Inc., Camarillo, Calif., for $147.5 million.
The Caney and Upper Sycamore formations are excluded from the sale, closing of which is set for late April.
Assuming that the transaction is completed, BNK plans to use the proceeds to accelerate the drilling of Caney wells in Tishomingo field, the company’s exploration efforts in Europe, and to repay a credit facility.
BNK said the transaction is structured to preserve its rights in the relatively undeveloped Caney and Upper Sycamore formations, which BNK said offer promising oil potential. A drilling rig is mobilizing to the next planned Caney well, Barnes 6-3H, to spud shortly. The rig is under contract to drill two wells with the option for two more wells.