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

Texas: Energy adds Bone Spring/Avalon acreage

01/07/2011 Energen Resources Corp., Birmingham, Ala., has purchased 3-year leases on 17,000 net acres in the Bone Spring and Avalon shale trends in the Permia...

NETL: Carbon dioxide for EOR provides model for pipeline system

02/03/2011 A private sector model with a state-based regulatory system, instead of one that is federal, will “most likely result in a robust” US c...

Brent tops WTI as benchmark

02/14/2011 As the international benchmark other crudes are priced against, “West Texas Intermediate is dead, long live North Sea Brent,” said anal...

ExxonMobil: Oil to account for most new production in 5 years

03/17/2011 ExxonMobil Corp. expects to add nearly 1.4 million boe/d net to its production by 2016, and oil will account for 80% of that new production, compan...

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