XTO to acquire Barnett Shale properties

XTO Energy Inc., an US based natural gas producer, has entered into a definitive agreement to acquire 12,900 net acres adjacent to XTO’s existing operations in the Barnett Shale core for approximately $800 million, from an undisclosed third party.

The company’s internal engineers estimate proved reserves to be in excess of 300 billion cubic feet of natural gas equivalent, of which about 25% is proved developed. The acquisition will initially add 35 million cubic feet of natural gas equivalent per day to the company’s production base.

Bob R. Simpson, Chairman and Chief Executive Officer, said XTO’s position in the core of the Barnett Shale has provided confident production growth, increasing resource potential and value creation for our shareholders.

These properties are located right in the heart of our operations and provide for more of the same, he added.

Given our extensive knowledge of the shale in this region, we anticipate ultimate recovery from these assets will be more than 1 TCF of natural gas over time, concluded Mr. Simpson.