By OGJ editors
HOUSTON, June 5 -- XTO Energy Inc. plans to buy privately held Peak Energy Resources Inc., a Barnett shale producer, for $105 million in stock. The purchase will boost XTO's Barnett shale holdings to nearly 200,000 net acres.
The properties are in Hood, Parker, and eastern Erath counties of Texas.
The transaction involves estimated proved gas reserves of 64 bcf, of which 14% is proved developed. Production from those properties is expected to reach 10 MMcfd by yearend and 25 MMcfd in 2007, XTO said.
Development costs for proved undeveloped reserves are estimated at $1.30/Mcf, based upon new wells spaced at 100 acres, said XTO. It reports potential of more than 200 bcf from the Peak Energy properties.
