XTO adds to acreage in Barnett shale, other core areas

XTO Energy said it plans to acquire producing properties in its core production areas of East Texas, northern Louisiana, and the San Juan area, and it also boosted its acreage in the Marcellus, Fayetteville, Barnett, and Haynesville shale areas.

Jul 22nd, 2008

By OGJ editors
HOUSTON, July 22 -- XTO Energy Inc. said it plans to acquire producing properties in its core production areas of East Texas, northern Louisiana, and the San Juan area, and it also boosted its acreage in the Marcellus, Fayetteville, Barnett, and Haynesville shale areas.

The acquisitions from various sellers are worth a total $1.3 billion, of which $1 billion closed during the second quarter, XTO said July 22. The sellers were not identified.

Separately, XTO announced plans to acquire 12,900 acres of Barnett shale acreage next to its existing operations for $800 million. That acquisition is expected to initially add 35 MMcfd to XTO's production base. Closing of that transaction is expected in October.

The $1.3 billion package involves estimated proved reserves of 185 bcf equivalent of natural gas, with 60% being proved developed. Starting July 1, these acquisitions add 20 MMcfd to XTO's production base. XTO added more than 280,000 net undeveloped acres, primarily in the Marcellus and Fayetteville shales.

The $800 million Barnett shale acquisition will add estimated proved reserves of more than 300 bcf of gas, with 25% being proved developed. The seller's name was not disclosed.

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