18.01.2017, 19:21
ExxonMobil acquires Permian assets for $6.6bn
OREANDA-NEWS. ExxonMobil will more than double its resources in the Delaware basin of the prolific Permian region in Texas and New Mexico with a $6.6bn acquisition.
The roughly 275,000 acres purchased in a largely stock deal hold 3.4bn bl of oil equivalent (boe) of resources in the New Mexico part of the Delaware, taking the major's total resource base in the Permian to 6bn boe. Net output from the acreage is more than 18,000 boe/d, of which about 70pc is liquids.
ExxonMobil is acquiring the assets from companies owned by the Bass family, a Fort Worth, Texas, family with a long history in the oil business, including the operating company BOPCO.
Of the $6.6bn total, the major will make an upfront payment of $5.6bn in ExxonMobil shares, followed by a series of cash payments of up to $1bn that will be paid from 2020 to 2032 commensurate with development of the resource, it said.
The Permian basin, the bulk of which is spread over Texas, is one of the lowest-cost shale oil producing regions in the US. The number of rigs drilling in the area has increased by 32pc to 264 since a year earlier and doubled from a five-year low of 132 touched in Aprilas companies such as Pioneer Natural Resources and Occidental step up drilling amid a recovery in prices.
ExxonMobil currently produces about 140,000 boe/d across its Permian basin leasehold. The bulk of the newly acquired acreage is contiguous with ExxonMobil's existing assets. The companies also hold producing acreage in other areas in the country.
The acquisition marks the first by Darren Woods, who took over as chief executive of ExxonMobil on 1 January from US Secretary of State nominee Rex Tillerson. Woods joined the major in 1992, holding various positions in the refining, chemicals and supply businesses.
The roughly 275,000 acres purchased in a largely stock deal hold 3.4bn bl of oil equivalent (boe) of resources in the New Mexico part of the Delaware, taking the major's total resource base in the Permian to 6bn boe. Net output from the acreage is more than 18,000 boe/d, of which about 70pc is liquids.
ExxonMobil is acquiring the assets from companies owned by the Bass family, a Fort Worth, Texas, family with a long history in the oil business, including the operating company BOPCO.
Of the $6.6bn total, the major will make an upfront payment of $5.6bn in ExxonMobil shares, followed by a series of cash payments of up to $1bn that will be paid from 2020 to 2032 commensurate with development of the resource, it said.
The Permian basin, the bulk of which is spread over Texas, is one of the lowest-cost shale oil producing regions in the US. The number of rigs drilling in the area has increased by 32pc to 264 since a year earlier and doubled from a five-year low of 132 touched in Aprilas companies such as Pioneer Natural Resources and Occidental step up drilling amid a recovery in prices.
ExxonMobil currently produces about 140,000 boe/d across its Permian basin leasehold. The bulk of the newly acquired acreage is contiguous with ExxonMobil's existing assets. The companies also hold producing acreage in other areas in the country.
The acquisition marks the first by Darren Woods, who took over as chief executive of ExxonMobil on 1 January from US Secretary of State nominee Rex Tillerson. Woods joined the major in 1992, holding various positions in the refining, chemicals and supply businesses.
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