XTO Energy Farmout Agreement/Drill Fund Agreement

XTO Energy Farmout Agreement/Drill Fund Agreement

16:09 01 September in News
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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.

Paul Jensen

pjensen@enercominc.com
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