"This acquisition illustrates the ongoing momentum the XTO franchise has built in our core operating positions across the country. We stake our initial claim and then grow through drilling and additional purchases," stated Bob R. Simpson, Chairman and Chief Executive Officer. "These properties fit perfectly into our long-term development platform and further strengthen our position as a top producer in East Texas."
These premium producing properties expand XTO Energy's holdings in the Sabine Uplift and Cotton Valley trends. Significant 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.
The transaction is scheduled to close on or before May 31, 2005. The final closing price will reflect a net revenue adjustment from the effective date, currently estimated at $20 - 25 million, typical closing and post- closing adjustments and minor preferential purchase right elections.
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