XTO Energy expands play in Barnett Shale

Fort Worth-based XTO (NYSE: XTO) ^ | July 22, 2008 | Dallas Business Journal

[smokingfrog]

Natural gas producer XTO Energy Inc. has signed a definitive agreement to buy an additional 12,900 acres in the Barnett Shale—an area focused in Wise, Tarrant and Denton counties that is known for its natural gas producing capabilities.

Fort Worth-based XTO (NYSE: XTO) is purchasing the acreage from an undisclosed third party for $800 million, bringing the company’s total play area in the Barnett Shale to 280,000 acres.

The transaction is subject to customary closing conditions and will be funded through the issuance of equity, long-term senior notes and the company’s commercial paper program.

Engineers believe the land mass involved in this latest transaction contains more than 300 billion cubic feet of natural gas equivalent. When the transaction is closed in October, XTO says the new acreage will add 35 million cubic feet of natural gas per day to its overall production base.

[smokingfrog]

[lesser_satan]

bump

[kcvl]

bttt