Oil and gas firm ExxonMobil has signed two separate agreements with Endeavor Energy Resources and American Energy – Utica (AEU) in the Permian basin in Texas and the Utica shale in Ohio, US.
The agreements will help the company to improve its US oil and natural gas portfolio managed by its subsidiary, XTO Energy.
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Through its agreement with Endeavor Energy, XTO will gain substantial operating equity in around 34,000 gross acres in the Wolfcamp formation in Midland and Upton counties.
The shallow production will be operated by Endeavor, and XTO will drill and operate horizontal wells in the deeper intervals.
ExxonMobil claims that the agreement increases XTO’s holdings in the Permian Basin to over 1.5 million net acres, enhancing the company’s presence in Texas for the production of onshore oil.
XTO Energy president Randy Cleveland said that the transactions will enable the company to develop high-margin liquids growth in areas such as the Permian and would also fund development of its domestic natural gas resource in the Utica play.
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By GlobalData"The Wolfcamp shale is a vast, tight oil resource with tremendous potential," Cleveland added.
XTO’s agreement with AEU will allow the latter to earn around 30,000 net acres of XTO’s Ohio leasehold in Harrison, Jefferson and Belmont counties.
XTO will optimise development by using proceeds from the transaction to fund 100% of near-term development costs. It continues to operate in a core area of around 55,000 net acres.
Image: ExxonMobil’s building in Downtown Houston. Photo: courtesy of WhisperToMe.
