XTO Energy Farmout Agreement/Drill Fund Agreement
16:09 01 September in News
In 2014 for the Wolfcamp and 2015 for the Spraberry formations, the Company entered into seven year Farmout agreements with a subsidiary of Exxon Mobil, XTO Energy, to develop approximately 30,000 net acres.
The agreement allows XTO Energy to earn a majority working interest in each horizontal well drilled and completed at its sole cost in the Spraberry, Wolfcamp A and B intervals.
The agreement is expected to substantially increase reserves and accelerate cash flows with no capital cost while proving up the economics of horizontal drilling in the offsetting owned leasehold.