XTO Energy & ExxonMobil Ink Deal to Develop Piceance Basin Acreage
XTO Energy has executed an agreement with ExxonMobil to develop acreage in the northeastern portion of the Piceance Basin in northwest Colorado. The arrangement will allow ExxonMobil and XTO to leverage their respective strengths to maximize the value of these assets.
Under the terms of the deal, XTO will farm-in approximately 69,500 contiguous gross acres east of ExxonMobil's Piceance Creek Unit in Rio Blanco and Garfield counties. XTO Energy will operate and earn 50% working interest ownership in the entire leasehold position by drilling four wells. XTO anticipates the first well, targeting the Williams Fork (Mesaverde) formation, to commence drilling by year-end 2005.
"This deal highlights another success in partnering with the majors to create mutually beneficial opportunities -- whether acquisitions, trades or joint ventures," stated Bob R. Simpson, Chairman and Chief Executive Officer. "XTO Energy has earned a solid reputation with our operational track-record. We are proud that our team will put its expertise, focus and determination to work on this project."
Keith A. Hutton, President, further comments, "The Piceance Basin is an
ideal addition to our tight-gas and unconventional property base. This
acreage position exposes XTO to a portion of the trillions of cubic feet of
natural gas the basin is projected to hold. Now, we move forward with our
drilling plans, evaluate the results and look towards successful execution for
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