XTO Energy completes acquisitions

Petroleum News Houston Staff

XTO Energy said May 30 that it has completed its previously announced acquisition of natural gas and coal bed methane producing properties in the Raton basin of Colorado, the Hugoton field of southwestern Kansas and the San Juan basin of New Mexico, from units of Williams of Tulsa, Okla., for $381 million. XTO said the final closing price reflects adjustments of $17 million for net revenues and other items from the effective date of the transaction and $2 million for preferential right elections.

XTO said internal engineers estimate proved reserves to be 308 billion cubic feet of natural gas of which 77 percent are proved developed. The acquired properties began contributing some 60 million cubic feet per day of natural gas to the company’s production June 1.

“We are proud to complete this timely acquisition. The properties perfectly reflect the characteristics which have built XTO’s legacy asset base today — long-lived production, high operating margins and significant upsides,” Bob Simpson, XTO chairman and chief executive officer, said in a statement.