EXXONMOBIL SELLS BARNETT SHALE ASSETS TO BVK CORPORATION FOR $750 MILLION
ExxonMobil signed an agreement with subsidiaries of BKV Corporation for the sale of operated and non-operated Barnett Shale gas assets in Texas for $750 million with additional payments contingent on future natural gas prices.
The sale supports corporate strategy to prioritize investments on advantaged assets with lowest cost of supply. The assets are part of North American gas resources removed from company’s development plan in 2020
“We are focused on delivering the most competitive returns to our shareholders by developing opportunities with the lowest cost of supply and further strengthening our industry-leading upstream position,” said Liam Mallon, president of ExxonMobil Upstream Company.
“Our subsidiaries have operated in the Barnett Shale safely and responsibly for nearly two decades, and we are encouraged by BKV’s plans to develop the resource in line with its stated pathway to net zero greenhouse gas emissions by 2025.”
ExxonMobil removed the Barnett Shale gas assets operated by its subsidiaries XTO Energy Inc. and Barnett Gathering LLC from its development plan in 2020.
As part of the agreement, all employees with ExxonMobil subsidiaries in the Barnett Shale will receive full employment offers with BKV. The sale is expected to close in the second quarter of 2022.
The Barnett Shale is a geological formation located in the Bend Arch-Fort Worth Basin. The core area of the Barnett Shale is in Denton, Johnson, Tarrant and Wise counties, and is largely dry gas, although Wise County is generally oilier. Much of the more recent activity in the Barnett has been in the more liquids-rich portions of the play, particularly in Montague, Cooke, Jack and Wise counties. Jack and Palo Pinto counties have also seen an uptick in drilling in recent quarters for the Marble Falls horizontal tight oil play, a formation that lies directly above the Barnett Shale.
The Barnett Shale is considered to be the “granddaddy” of all U.S. shale plays as it was the formation in which Mitchell Energy & Development first successfully implemented the technology necessary to unlock shale gas in the early 1990s.
(Source: ExxonMobil/Wikipedia/Natural Gas Intelligence – Image: Drilling the Barnett shale near Fort Worth)
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