XTO Energy Inc. said it paid Total E&P USA, Inc. about $300 million for 120 Bcfe of reserves in the Sabine Uplift area of East Texas and the Maben Field of Mississippi.
"We continue to acquire great producing properties, from the majors, which build opportunities for the future," said XTO President Keith A. Hutton. "The properties in the Sabine Uplift complement our ongoing development program with long-lived production and additional inventory. In Mississippi, the Maben Field offers potential to increase productivity through different stimulation techniques, uphole recompletions and new horizontal and vertical well targets. As always, our team will remain focused on pursuing bolt-on acquisitions throughout the year."
XTO said the proved reserves to are 60% proved developed and 95% natural gas. XTO estimates its development costs for the proved undeveloped reserves at $1.20-1.40/Mcf. The acquisitions will initially add production of about 15 MMcf/d.
About 75% of the reserves are located the Sabine Uplift region of East Texas, where XTO already has a large presence. The properties add to XTO's holdings in the Carthage Field and establish a new position in the Bethany Field. The remaining reserves are located in the Maben Field of Mississippi, which XTO said is characterized by high per-well production rates. The transaction is scheduled to close by Feb. 28.
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