By OGJ editors
HOUSTON, Apr. 1 -- XTO Energy Inc. agreed to purchase producing properties in East Texas and northern Louisiana for $350 million from Plains Exploration & Production Co., Houston.
Closing is expected by May 31, with an effective date retroactive to Jan. 1, said XTO, Fort Worth.
The company estimates it is acquiring 175 bcfe of proved reserves, of which 75% are proved developed and 95% are natural gas. Initially, the acquisitions will increase XTO's production by 35 MMcfd.
These properties expand XTO's holdings in the Sabine Uplift and Cotton Valley trends. Fields include Carthage, Rosewood, White Oak-Glenwood, Beckville, East Henderson, and Oak Hill.
The predominant producing formations are the sand sequences of the Cotton Valley, Bossier, Travis Peak, and Pettit zones. XTO will operate about 60% of the value of the acquired interests.
