US-based BKV announced that its subsidiaries have acquired operated and non-operated gas assets in the Barnett Shale region, in North Texas, from ExxonMobil for $750m.
The deal includes natural gas upstream and related midstream infrastructure in the Barnett Shale from ExxonMobil’s subsidiaries XTO Energy, and Barnett Gathering.
BKV CEO Chris Kalnin said: “We are excited to welcome approximately 130 new employees to our team, expand our footprint in the Barnett, and move one step closer towards the safe and profitable production of net-zero natural gas.”
In line with the terms of the deal, which was signed in May 2022, BKV purchased approximately 160,000 total net acres located mainly in the Tarrant, Parker, and Johnson counties. The company also purchased additional smaller positions in other counties.
BKV said the acquired upstream assets include low decline wells, which are ideal for generating consistent cash flow, and high average working interests of approximately 93% in more than 2,100 wells.
Exxon divested nearly 1,270km of gathering pipelines, compression, and processing midstream infrastructure.
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BKV Barnett operations vice-president Nick Kunze said: “We are excited to get started and build upon the strengths and legacy of the XTO team as we drive future growth in the Barnett.
“The extensive synergistic opportunities already in place allow us to hit the ground running, such as working toward certifying responsibly sourced gas (RSG) at the wellhead through a credible third party, and offering additional access to premier Gulf Coast markets, just to name a few.”
Depending on future natural gas prices, additional contingent payments may be incurred, along with typical closing adjustments.
Upon closing, BVK’s total reserves and total production capacity are approximately 5.8 trillion cubic feet equivalent and 900 million cubic feet equivalent per day, respectively. The firm owns more than 7,500 producing wells across 487,000 net acres.