XTO Energy picks up more production

Exploration and production independent XTO Energy closed deals adding 30 trillion cubic feet of gas equivalent per day to its growing production base and established year-end 2003 proved reserves at around 4.1 tcf of gas equivalent.

XTO also expects daily natural gas production to increase from 750 to 755 million cubic feet in the 2004 first quarter to 780 to 790 mmcf during the final three quarters of the year. Oil production is expected to remain flat at 13,000 to 13,500 barrels per day, as well as natural gas liquids at 6,000 to 6,500 bpd.

With the close of previously announced acquisitions amounting to $243 million in East Texas and Louisiana, the company added about 182 bcf of gas equivalent, roughly half of which falls into the category of proved developed, XTO said Jan. 30. Development activities by year-end 2004 are expected to increase daily production to 40 mmcf of gas equivalent from a current 30 mmcf of equivalent, the company said. About 90 percent of the production is said to be natural gas.

XTO estimated cost of the reserve additions to be about 80 cents per thousand cubic feet. The company will operate more than 80 percent of the asset value which covers 55,000 net acres in the development corridor.

In East Texas, XTO purchased proved reserves amounting to 77 bcf of gas equivalent, 37 percent of which are developed. Current production from the properties is about 14 mmcf of equivalent per day. “Significant volume growth is anticipated during 2004,” the company said.

XTO also expanded its position in northern Louisiana with the purchase of proved reserves totaling 105 bcf of equivalent (60 percent developed) in various fields, including Haynesville and Middlefork. The properties currently produce some 12.5 million cubic feet of natural gas and 500 barrels of oil per day.