XTO Energy Acquires $1 Billion in Producing Properties and Leasehold
XTO Energy Inc. has entered into definitive agreements with multiple parties to acquire producing properties located in our Eastern and San Juan Regions and to purchase acreage positions in the Woodford, Fayetteville and Barnett shales for a total of about $1 billion. From the producing property transactions, XTO Energy's internal engineers estimate proved reserves to be 212 billion cubic feet of gas equivalent (Bcfe) of which approximately 60% are proved developed. These acquisitions will add about 35 million cubic feet of natural gas equivalent per day (MMcfe/d) to the Company's growing production base. In the emerging shale plays, the Company added 76,000 net acres to expand its drilling inventory.
"Our acquisitions efforts are focused and disciplined. We continue to capture long-lived producing properties in our legacy basins. In addition, we are aggressively securing leasehold acreage in the best regions of the premier plays. These acquisitions, involving over 25 transactions, add production and reserves today while expanding the Company's prolific drilling inventory for the future," stated Bob R. Simpson, Chairman and Chief Executive Officer. "Going forward, we see more consolidation opportunities in 2008. XTO is well positioned to continue to purchase 'bolt-on' properties and, by doing so, accreting long-term value. Given this key advantage, and the evolution of the financial markets, XTO will not establish a master limited partnership at this time."
"Based on our success in the Barnett, Woodford and Fayetteville plays, XTO's team has now established an expansive growth platform in the emerging shale regions. These leasehold additions, along with others in 2007, have built the core holdings to substantially grow shale production and reserves in the coming years." said Keith A. Hutton, President.
In its Eastern Region, XTO is acquiring 70 Bcfe of proved reserves in numerous fields with daily production of 8 Mmcfe. In the San Juan Basin, the Company purchased 142 Bcfe of proved reserves with daily production of 27 Mmcfe. The leasehold acquired in the shale plays included 41,000 net acres in the Woodford, 32,000 net acres in the Fayetteville and 3,000 net acres in the Barnett. The Company's total leasehold positions in these shale basins now include 120,000 net acres in the Woodford, 240,000 net acres in the Fayetteville and about 250,000 net acres in the Barnett, of which 50% is in the core.
The acquisitions are scheduled to close during the first quarter of 2008. Funding is expected to be provided through a combination of cash flow, bank debt and capital market transactions. The final closing price for each transaction is subject to typical adjustments from closing, post-closing and minor preferential purchase right elections.
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