XTO Energy buying $1.1 billion in properties from ChevronTexaco

XTO Energy Inc., Fort Worth, Tex., agreed to buy 150 oil and natural gas properties from ChevronTexaco Corp. for $1.1 billion.

May 17, 2004

By OGJ editors
HOUSTON, May 17 -- XTO Energy Inc., Fort Worth, Tex., agreed to buy 150 oil and natural gas properties from ChevronTexaco Corp. for $1.1 billion in a move to expand XTO's existing operations and to enter a coal bed methane play in the Rocky Mountains and a new operating region in South Texas.

The properties are in seven states, with more than 90% of production in Texas and New Mexico. The transaction is scheduled to close on or before Aug. 6, with an effective date retroactive to Jan. 1.

XTO Energy's internal engineers estimate proved reserves at 786 Bcfe, 88% of which are proved developed. The acquisitions initially will add production of 88 MMcfd and 14,000 b/d.

In the Rockies, XTO is expanding its coal bed methane presence with the purchase of 67 Bcfe of proved reserves in Buzzards Bench field of Emery County, Utah. This property, in the Ferron sand, is an offset to Drunkard's Wash field and produces 12 MMcfed.

In South Texas, XTO is purchasing 54 Bcfe of proved reserves in 9 counties with net production of 20 MMcfed.

The sale is part of ChevronTexaco's previously announced plans to divest nonstrategic assets and realign strategic business units.