• 4 minutes "Natural Gas Trading Picks Up Considerably Amid High Volatility" by Charles Kennedy - ...And is U.S. NatGas Futures dramatically overbought at the $6.35 range?
  • 8 minutes How Far Have We Really Gotten With Alternative Energy
  • 12 minutes  What Russia has reached over three months diplomatic and military pressure on West ?
  • 3 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 hours Revisiting: "The U.S. Grid Isn’t Ready For A Major Shift To Renewables" from March 2021 by Irina Slav at OILPRICE
  • 6 days "The Calm Before The Storm In Oil Markets" by Tom Kool of OILPRICE and seen at YahooFinance
  • 1 day How cheap Chinese tires might explain Russia's 'stalled' 40-mile-long military convoy in Ukraine
  • 5 days "Russia will stop 'in a moment' if Ukraine meets terms - Kremlin" by Reuters via Yahoo News...but Reuters suddenly cut out the balanced part of the story.
  • 5 days Will Variants and Ill-Health Continue to Plague Economic Outlooks?
  • 6 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Political Crisis Could Thwart Georgia’s Bid For EU Membership

Political Crisis Could Thwart Georgia’s Bid For EU Membership

Political backsliding and “deteriorating relations”…

Damir Kaletovic

Damir Kaletovic

Damir Kaletovic is an award-winning investigative journalist, documentary filmmaker and expert on Southeastern Europe whose work appears on behalf of Oilprice.com and several other news…

More Info

Exxon More Than Doubles Permian Basin Holdings For $6.6B

As Permian Basin buyers line up, Exxon Mobil (XOM) on Tuesday said it would pay up to $US6.6 billion to more than double its acreage in the superstar shale area.

The news comes only a day after Noble Energy (NBL) agreed to buy Clayton Williams Energy (CWEI) for $US2.7 billion to expand its own holdings in the Permian.

Exxon will buy companies owned by the Bass family of Fort Worth, and it will make an upfront payment of US$5.6 billion in stocks.

The acquired companies hold about 275,000 acres of leasehold that produces more than 18,000 net oil equivalent barrels per day in west Texas and New Mexico parts of the Permian Basin, Exxon said. Additional payments of up to US$1 billion will start in 2020, depending on production performance.

This is the biggest deal for Exxon since 2009, when it bought XTO Energy, and the first major deal struck my Chief Executive Darren Woods since he took over for Rex Tillerson, Trump’s pick for U.S. Secretary of State.

Exxon currently produces about 140,000 net oil-equivalent barrels per day across its Permian Basin leasehold of roughly 1.5 million acres.

Exxon spokeswoman Suann Guthrie, an Exxon spokeswoman, told news agencies that the company expected “attractive returns” with oil prices even as low as US$40.

The Permian Basin has become increasingly attractive of late because other large U.S. shale fields are only profitable with oil prices at US$60 per barrel or higher, while oil in the Permian can be produced at current prices of around US$53 per barrel.

Exxon estimates that the new Permian acreage contains some 3.4 billion barrels of recoverable oil in the Permian and can produce about 18,000 barrels of oil equivalent per day, mostly crude, with current technology.

By Damir Kaletovic for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News