Exxon Increases Acreage | Russell T. Rudy Energy LLC
The February 3, 2014 issue of “Rigzone” reports that in separate deals in the liquids rich Permian Basin and the gas prone Utica shale, ExxonMobil is increasing its commitment to domestic exploration and production.
Through its subsidiary, XTO, an agreement with Endeavor Energy Resources has been reached, committing ExxonMobil to funding development of the Wolfcamp formation in exchange for a substantial equity position in 34,000 gross acres. Endeavor will operate the shallower zones, while XTO will develop the Wolfcamp.
XTO also signed an agreement with American Energy-Utica as a result of a competitive bid process. American Energy-Utica will be able to earn approximately 30,000 net acres while XTO will use the proceeds from the transaction to fund development of 55,000 net acres. XTO has been encouraged by their initial Utica well which is producing about 15 MMCF/day.
XTO has increased its position in the Appalachia region by almost 30% since 2013 and currently has about 645,000 acres in the Marcellus and Utica shales.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/131399/ExxonMobil_Boosts_Acreage_in_Permian_Basin_Utica.
