By OGJ editors
HOUSTON, Apr. 15 -- XTO Energy Inc., Fort Worth, Tex., has agreed to buy 311 bcf of natural gas and coalbed methane reserves, of which 77% is proved developed, from Williams Cos. Inc., Tulsa, for $400 million.
The properties are in the Raton basin of Colorado, Hugoton field of southwestern Kansas, and the San Juan basin of New Mexico and Colorado. The acquisition will add 60 MMcfd to XTO's production base.
Closing is expected by June 6, and the deal will be retroactive to Mar. 1 for Hugoton field assets and Apr. 1 for the other assets. Williams said part of the San Juan basin non-operated properties is subject to preferential purchase rights.
XTO Chairman and CEO Bob R. Simpson said the purchase fits his company's "growth strategy, which combines high margin production with low risk drilling upsides located in legacy asset basins."
The properties also add a new core operating area, said Steffen E. Palko, XTO vice chairman and president. "Our coal bed methane expertise is expanding into the prolific Raton basin. We are boosting XTO's existing San Juan basin operations with new conventional and coal bed methane gas positions."
In the Raton basin, XTO is acquiring 121 Bcfe of proved reserves (66% developed) in Las Animas County, Colo. Gas sales from these properties total 23 MMcfd (net). Upon closing, XTO will control 100% interest across 54,317 acres (net) of CBM leasehold containing 191 producing wells. Only 40% of that acreage is developed.
In Hugoton field, XTO is acquiring 107 Bcfe of proved reserves (98% developed). The properties produce 24 MMcfd (net). Upon closing, XTO will gain 109,819 net developed acres, with 341 operated wells and an average interest of 84%.
In the San Juan basin, XTO is acquiring 83 Bcfe of proved reserves (67% developed) in San Juan and Rio Arriba counties of New Mexico and LaPlata County of Colorado. These non-operated properties produce about 13 MMcfd (net), of which 5 MMcfd is CBM gas. Leasehold for the company encompasses 15,132 acres (net), and working interests for XTO will range from 1% to 68% on these assets.
