FORT WORTH, Texas, June 30 /PRNewswire-FirstCall/ -- XTO Energy Inc.
(NYSE: XTO) announced today it has executed an agreement with Exxon Mobil
Corporation (NYSE: XOM) to develop acreage in the northeastern portion of the
Piceance Basin in northwest Colorado. The arrangement will allow ExxonMobil
and XTO to leverage their respective strengths to maximize the value of these
assets.
Under the terms of the deal, XTO will farm-in approximately 69,500
contiguous gross acres east of ExxonMobil's Piceance Creek Unit in Rio Blanco
and Garfield counties. XTO Energy will operate and earn 50% working interest
ownership in the entire leasehold position by drilling four wells. XTO
anticipates the first well, targeting the Williams Fork (Mesaverde) formation,
to commence drilling by year-end 2005.
"This deal highlights another success in partnering with the majors to
create mutually beneficial opportunities -- whether acquisitions, trades or
joint ventures," stated Bob R. Simpson, Chairman and Chief Executive Officer.
"XTO Energy has earned a solid reputation with our operational track-record.
We are proud that our team will put its expertise, focus and determination to
work on this project."
Keith A. Hutton, President, further comments, "The Piceance Basin is an
ideal addition to our tight-gas and unconventional property base. This
acreage position exposes XTO to a portion of the trillions of cubic feet of
natural gas the basin is projected to hold. Now, we move forward with our
drilling plans, evaluate the results and look towards successful execution for
the future."
XTO Energy Inc. is a domestic energy producer engaged in the acquisition,
development and discovery 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 and
Louisiana.
This release can be found at http://www.xtoenergy.com .
Statements made in this news release, including those relating to drilling
timeline, earning an interest in the leasehold, potential reserves and
successful execution drilling plans 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 ability to obtain drilling permits, the availability of
drilling equipment and personnel, the timing and results of drilling activity
and higher than expected production costs and other expenses. 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, which are
incorporated by this reference as though fully set forth herein.
Reserve estimates and estimates of reserve potential or upside with
respect to the farmed-in acreage were made by our internal engineers without
review by an independent petroleum engineering firm. Data used to make these
estimates were furnished by the other party and may not be as complete as that
which is available for our owned properties. We believe our estimates of
proved reserves comply with criteria provided under rules of the Securities
and Exchange Commission.
SOURCE XTO Energy Inc.
 back to top
Related links:
http://www.xtoenergy.com
CONTACT:
Louis G. Baldwin, Executive Vice President &
Chief Financial Officer, or Gary D. Simpson, Senior Vice
President, Investor Relations & Finance, both of XTO Energy Inc.,
+1-817-870-2800
|
