XTO closes ChevronTexaco property deal for $912M

Ray Tyson

Exploration and production independent XTO Energy said Aug. 17 that it closed the company’s previously announced acquisition of properties from ChevronTexaco for $912 million, $110 million of which was paid as a deposit in May.

XTO said its own engineers estimate acquired reserves to be 732 billion cubic feet of natural gas equivalent, after adjustments were made for preferential purchase-right elections and production sold from Jan. 1.The properties expand XTO’s operations in its Eastern region, the Permian basin and Midcontinent area while opening new coalbed methane operations in the Rocky Mountains and a new operating region in South Texas.

Beginning Aug. 16, the acquired properties were contributing daily production of about 88 million cubic feet of natural gas and 14,000 barrels of oil. About 87 percent of the reserves are proved developed with 47 percent attributable to oil.