XTO Ups Production Target, Sets Development Budget at $4.5B
XTO Energy Inc. announced that the Company is increasing its 2008 production growth target to 28-30% based on recently announced agreements to acquire Hunt Petroleum Corporation and Bakken Shale producing properties from Headington Oil Company. Based on volume projections for next year, the Company is also establishing an annual production growth target of 20% for 2009. In order to achieve this production growth, a preliminary 2009 development budget of $4.0-$4.5 billion utilizing 110 to 120 operated drilling rigs is anticipated.
"Given XTO's significant acquisitions and expanding shale basin presence, we have now assimilated the best property base for growth in the Company's history," stated Bob R. Simpson, Chairman and Chief Executive Officer. "With acquisitions and our planned development work, we are targeting a production volume increase in 2009 of about 450 million cubic feet equivalent above the average rate in 2008. This significant growth can be delivered with about 50% to 55% of the estimated cash flow at the current commodity price outlook."
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