ExxonMobil has announced its plans to double its Permian Basin resource to nearly six billion barrels of oil equivalent (boe) with the acquisition of companies owned by the Bass family of Fort Worth, Texas.
With the acquisition, Exxon Mobil will procure an estimated resource of 3.4 billion boe in New Mexico’s Delaware Basin, within Permian Basin.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
ExxonMobil will make an upfront payment of $5.6bn in ExxonMobil shares, along with a series of additional contingent cash payments from the beginning of 2020 that totals at nearly $1bn.
ExxonMobil will have to complete the payment of this additional amount by 2032.
ExxonMobil chairman and chief executive officer Darren W. Woods stated that the properties are a major addition to the company’s unconventional liquids portfolio, which is managed by its subsidiary, XTO Energy.
Woods added: “This acquisition strengthens ExxonMobil’s significant presence in the dominant US growth area for onshore oil production.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData“This investment gives us an exceptional Delaware Basin position in a proven multi-stacked play that can generate attractive returns in a low-price environment.
“The highly contiguous position will provide significant cost advantages in developing 3.4 billion barrels of resource, 75% of which is liquids.
“By utilising ExxonMobil’s technological strength, coupled with its unconventional development capabilities, we can drill the longest lateral wells in the Permian Basin, reducing development costs and increasing reserve capture.”
The acquired companies hold nearly 275,000 acres of leasehold and produce approximately 18,000 net oil equivalent barrels per day, 70% of which is liquids.
It includes about 250,000 acres of leasehold in the Permian Basin, with the bulk of that in contiguous, held-by-production units in New Mexico Delaware Basin and more than 60 billion boe estimated in place.
