Exxon Mobil Corporation and XTO Energy Inc. announce agreement
Exxon Mobil Corporation and XTO Energy Inc. announced today an all-stock transaction valued at US$ 41 billion. XTO’s strong resource base and technical expertise coupled with Exxon Mobil’s advanced R&D and operational capability, and financial capacity, should lead to increased opportunities for the development of additional supplies of unconventional gas and oil resources.
The agreement is good news for the United States economy and energy security, as it will enhance opportunities for job creation and investment in the production of America’s own clean-burning natural gas resources.
XTO’s resource base is the equivalent of 45 trillion ft3 of gas and includes shale gas, tight gas, coal bed methane and shale oil. These will complement ExxonMobil’s holdings in the United States, Canada, Germany, Poland, Hungary and Argentina.
Over the company’s 23 year history, XTO has assembled a substantial, high-quality and diverse resource base in producing basins across the United States.
Following the transaction closing, ExxonMobil intends to establish a new upstream organisation to manage global development and production of unconventional resources, enabling the rapid development and deployment of technologies and operating practices to increase production and maximise resource value. The new organisation will be located in Fort Worth, Texas, in XTO’s current offices.
Read the article online at: https://www.oilfieldtechnology.com/exploration/21122009/exxon_mobil_corporation_and_xto_energy_inc-_announce_agreement/
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