Exxon's Deal more than Doubles its Permian Resource

ExxonMobil said January 17 it will more than double its Permian Basin shale resource to 6bn barrels oil equivalent by acquiring 3.4bn boe – of which a quarter is gas – in New Mexico’s Delaware Basin. It will buy the assets from firms owned by the Bass family of Fort Worth, Texas.

ExxonMobil will make an upfront payment of $5.6bn in its own shares, and a series of additional contingent cash payments totaling up to $1bn, to be paid beginning in 2020 and ending no later than 2032 commensurate with the development of the resource.

Darren W. Woods was appointed ExxonMobil chairman and CEO, effective January 1, 2017 (Photo credit: Exxon)

Exxon’s new CEO Darren W. Woods said the new properties are “a major addition” to its XTO Energy-managed unconventional US portfolio. The supermajor said the acquired companies, which include the operating entity Bopco, hold about 275,000 acres of leasehold and production of more than 18,000 net boe/d, of which 70% liquids – including 250,000 acres in the Permian Basin. 

Exxon’s current Permian basin production is some 140,000 boe/d net. There are about 5,800 ft³ of gas per boe.

Mark Smedley