XTO Energy Completes Bakken Shale Acquisition for $1.8 Billion in Cash and Stock; Agrees to Acquire Additional 100,000 Acres
Posted on: Tuesday, 15 July 2008, 18:00 CDT
FORT WORTH, Texas, July 15 /PRNewswire-FirstCall/ -- XTO Energy Inc. has closed its previously announced acquisition of producing oil properties from Headington Oil Company for $1.05 billion in cash consideration and 11,742,391 shares of XTO common stock for total consideration of $1.8 billion. The purchase includes 352,000 net acres of Bakken Shale leasehold in Montana and North Dakota. XTO Energy's internal engineers estimate proved reserves on the properties to be 68 million barrels of oil equivalent, of which 60% are proved developed. The acquisition will add about 10,000 barrels of oil equivalent per day of production. In addition, the Company has agreed to acquire 100,000 net undeveloped acres in the play and 400 barrels per day of production for approximately $115 million from undisclosed parties in separate transactions.
"With these deals, XTO now becomes a leading operator in perhaps the largest oil resource play in the nation, with more than 450,000 net acres. As with all our other acquisitions, our objective is to more than double the proved reserves through the application of cutting-edge technology. Given the opportunities in the Bakken through horizontal drilling, multiple stimulations and enhanced recovery, we anticipate the potential for even more," stated Keith A. Hutton, President. "Currently, our team has four drilling rigs at work with plans to increase the activity to six rigs during the first half of 2009. Early well results are encouraging with a recent producer, completed in the Middle Bakken, flowing at a rate of 650 barrels per day. At the same time, we have expansive coverage of the emerging Sanish-Three Forks play as established by production rates on offsetting acreage. XTO will soon spud its first horizontal well into this interval."
XTO Energy Inc. is a domestic natural gas producer engaged in the acquisition, exploitation and development of quality, long-lived oil and natural gas properties in the United States. Its properties are concentrated in Texas, New Mexico, Arkansas, Oklahoma, Kansas, Wyoming, Colorado, Alaska, Utah, Louisiana, Mississippi, Montana, North Dakota, Pennsylvania and West Virginia.
This release can be found at http://www.xtoenergy.com/.
Statements made in this news release, including those relating to the proved and proved developed reserves, future proved reserves, daily production increases, size of the resource play, number of rigs during the first half of 2009 and timing of spudding new wells in new intervals are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the availability of drilling equipment and personnel, the timing and results of drilling activity, higher than expected production costs and other expenses and failure to close on acquisition of the additional acreage in the Bakken Shale. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in the Company's filings with the Securities and Exchange Commission.
XTO Energy Inc.
CONTACT: Louis G. Baldwin, Executive Vice President & Chief FinancialOfficer, +1-817-870-2800, or Gary D. Simpson, Senior Vice President, InvestorRelations & Finance, +1-817-870-2800, both of XTO Energy Inc.
Web site: http://www.xtoenergy.com/
Source: PRNewswire-FirstCall
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