ExxonMobil announced it entered into a non-monetary exchange agreement with LINN Energy, LLC to add 17 800 net acres in the Permian Basin to its US oil and natural gas portfolio managed by subsidiary XTO Energy Inc.
In the exchange, LINN Energy will receive interest in about 500 net acres from ExxonMobil鈥檚 South Belridge Field, near Bakersfield, California.
In the agreement, ExxonMobil will receive 17 000 net acres in the Midland Basin core area in west Texas that is most prospective for horizontal Wolfcamp and Spraberry development, currently producing about 4700 boepd. ExxonMobil will also receive 800 net acres in the New Mexico Delaware Basin. Both acreage positions will be operated and developed by XTO Energy.
This is the second non-monetary exchange agreement with LINN Energy this year. In May, ExxonMobil added nearly 26 000 acres in the Permian Basin. In that agreement, LINN Energy received a portion of ExxonMobil鈥檚 interest in the Hugoton gas field in Kansas and Oklahoma.
鈥淲e continue to expand our leasehold position in a prolific area that is poised for profitable volumes growth from multiple horizons in the Wolfcamp and Spraberry formations,鈥� said Randy Cleveland, president of XTO Energy. 鈥淥ur operated-acreage position in the Midland Basin Wolfcamp core is now around 120 000 net acres. We continue to increase drilling activity in the play, currently operating six horizontal rigs, and are very encouraged by initial well results.鈥�
This agreement extends XTO鈥檚 leasehold position across the entire Permian Basin to more than 1.5 million acres and net oil-equivalent production to more than 95 000 bpd.
LINN Energy will acquire ExxonMobil鈥檚 interests in the South Belridge Field, which currently produces approximately 3400 bpd.
鈥淭his transaction further strengthens XTO鈥檚 significant presence in one of the major US growth areas for onshore oil production,鈥� Cleveland said.
Adapted from a press release by聽