XTO acquires San Juan basin gas properties from MarkWest Hydrocarbons
By OGJ editors
HOUSTON, June 10 -- XTO Energy Inc., Fort Worth, Tex., agreed to buy coal bed methane and natural gas producing properties in the San Juan basin from Markwest Hydrocarbons Inc., Denver, for $60.5 million.
The deal involved proved reserves of 47 bcfe, Markwest said. XTO expects the acquisition initially will add 9.5 MMcfd to its gas production base.
"Over the past 6 months, XTO has been very effective in acquiring choice gas properties to supplement our strong internal growth," said Bob R. Simpson, XTO chairman and CEO.
The properties are in La Plata County of southwestern Colorado and San Juan County of northwestern New Mexico. The transaction is expected to close on June 30, effective retroactive to June 1.
About 15% of the property package is subject to preferential purchase rights. After closing, XTO said the acquisition will increase its San Juan basin holdings by 15,300 gross acres and will add another 115 operated wells.
MarkWest said it plans to use proceeds from the sale to expand its Canadian drilling program, to repay debt, and for general corporate purposes.