XTO Completes Bakken Shale Acquisition
XTO Energy Inc. has closed its previously announced acquisition of producing oil properties from Headington Oil Company for $1.05 billion in cash consideration and 11,742,391 shares of XTO common stock for total consideration of $1.8 billion. The purchase includes 352,000 net acres of Bakken Shale leasehold in Montana and North Dakota. XTO Energy's internal engineers estimate proved reserves on the properties to be 68 million barrels of oil equivalent, of which 60% are proved developed. The acquisition will add about 10,000 barrels of oil equivalent per day of production. In addition, the Company has agreed to acquire 100,000 net undeveloped acres in the play and 400 barrels per day of production for approximately $115 million from undisclosed parties in separate transactions.
"With these deals, XTO now becomes a leading operator in perhaps the largest oil resource play in the nation, with more than 450,000 net acres. As with all our other acquisitions, our objective is to more than double the proved reserves through the application of cutting-edge technology. Given the opportunities in the Bakken through horizontal drilling, multiple stimulations and enhanced recovery, we anticipate the potential for even more," said Keith A. Hutton, President. "Currently, our team has four drilling rigs at work with plans to increase the activity to six rigs during the first half of 2009. Early well results are encouraging with a recent producer, completed in the Middle Bakken, flowing at a rate of 650 barrels per day. At the same time, we have expansive coverage of the emerging Sanish-Three Forks play as established by production rates on offsetting acreage. XTO will soon spud its first horizontal well into this interval."
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