ExxonMobil expands Permian acreage, enters Utica agreement

XTO Energy Inc., a subsidiary of ExxonMobil Corp., has agreed to fund development to gain operating equity in 34,000 gross acres in the liquids-rich Wolfcamp in Texas’s Midland and Upton counties, increasing the company’s holdings in the Permian basin to just more than 1.5 million net acres.

XTO also has signed an agreement with American Energy–Utica LLC (AEU) that will enable AEU to earn 30,000 net acres of XTO’s Utica basin leasehold in Ohio’s Harrison, Jefferson, and Belmont counties.

In the Wolfcamp, Endeavor will continue to operate shallow production while XTO will drill and operate horizontal wells in the deeper intervals.

“The Wolfcamp shale is a vast, tight oil resource with tremendous potential,” said XTO Pres. Randy Cleveland. “The presence of multiple, stacked pay zones creates the potential for capital-efficient horizontal development, and the proximity to XTO’s ongoing Wolfcamp operations will offer operating cost efficiencies.”

In the Utica, XTO will continue to operate in a core area of 55,000 net acres, optimizing development by using proceeds from the transaction to fund 100% near-term development costs.

“We just initiated development in the Utica and are encouraged by results from our initial well that is producing at a peak 30-day rate of about 15 MMcfd of dry gas,” said Cleveland. “The agreement funds near-term development of a substantial operating position in this emerging play.”

XTO in 2013 expanded production in the Appalachia region by almost 30%, maintaining 645,000 acres in the Utica and Marcellus.

“These transactions underscore our commitment to developing high-margin liquids growth in areas such as the Permian, while also efficiently funding development of our extensive domestic natural gas resource in emerging plays such as the Utica,” Cleveland stated.

Related Articles

EIA: Marcellus gas production continues to outpace takeaway capacity

04/25/2014 Rising production of natural gas in the Marcellus shale play in the Appalachian basin continues to outpace the growth in the region’s pipeline take...

MARKET WATCH: Brent crude prices top $110/bbl on geopolitical tensions

04/25/2014 In London, ICE Brent crude oil prices moved up this week, topping $110/bbl on Apr. 24 “amid rising geopolitical tensions between Russia and Ukraine...

EIA: Companies’ global upstream spending flat in 2013

04/25/2014 According to annual reports from 42 international oil and natural gas companies that have reported data on upstream expenditures since 2000, total ...

Voters ready to respond to Keystone XL delays, API-sponsored poll finds

04/24/2014 Candidates’ stances on whether to complete the proposed Keystone XL crude oil pipeline and other energy issues potentially could affect midterm con...

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