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XTO Raises Production Growth Target Following New Acquisitions

Posted on: Wednesday, 11 June 2008, 09:01 CDT

US-based natural gas producer XTO Energy has announced that it is increasing its 2008 production growth target to 28% to 30% based on its new agreements to acquire Hunt Petroleum and Bakken Shale producing properties from the Headington Oil Company.

Based on volume projections for next year, the company is also establishing an annual production growth target of 20% for 2009. In order to achieve this production growth, a preliminary 2009 development budget of $4 billion to $4.5 billion utilizing 110-120 operated drilling rigs is anticipated.

Bob Simpson, XTO's chairman and CEO, said: "Given XTO's significant acquisitions and expanding shale basin presence, we have now assimilated the best property base for growth in the company's history. With acquisitions and our planned development work, we are targeting a production volume increase in 2009 of about 450 million cubic feet equivalent above the average rate in 2008. This significant growth can be delivered with about 50% to 55% of the estimated cash flow at the current commodity price outlook."

Source: Datamonitor

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