XTO Energy Acquires San Juan Basin Acreage
XTO Energy has entered into a definitive agreement with Markwest Hydrocarbon, Inc. to acquire coal bed methane and natural gas producing properties located in the San Juan Basin of New Mexico and Colorado for $60.5 million. XTO Energy's internal engineers estimate proved reserves to be 50 billion cubic feet of gas equivalent (Bcfe) of which 78% are proved developed. This acquisition will initially add about 9.5 million cubic feet per day (MMcfd) of gas production to the Company's steadily growing production base.
"Over the past six months, XTO has been very effective in acquiring choice gas properties to supplement our strong internal growth," stated Bob R. Simpson, Chairman and Chief Executive Officer. "This deal highlights our continuing success in expanding XTO's core areas with the right opportunities."
"Long-lived gas production with solid, low-risk upsides have built our Company," says Steffen E. Palko, Vice Chairman and President. "These assets fit perfectly into our operational expertise."
The properties to be acquired are located in La Plata County of southwestern Colorado and San Juan County of northwest New Mexico. Upon closing, the Company will increase its holdings in the San Juan Basin by 15,300 gross (7,663 net) acres and will add another 115 operated wells. Over 70% of current gas production is attributable to the highly prolific Fruitland Coal formation.
This transaction is scheduled to close on June 30, 2003, with an effective date of June 1, 2003. The final closing price is subject to typical closing and post-closing adjustments. Approximately 15% of the property package is subject to preferential purchase rights. This purchase will initially be funded through borrowings under the Company's existing bank credit facility and will be repaid through 2003 operating cash flow.
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Company: Markwest Hydrocarbon more info
- XTO Energy Acquires San Juan Basin Acreage (Jun 06)