Exxon Puts Texas Barnett Shale Gas Properties Up For Sale

Exxon Mobil on Monday put it’s Barnett Shale holdings that include 2,700 wells across about 182,000 acres in North Texas up for sale. The producing properties are valued at between $400 million and $500 million, according a person familiar with the matter Reuters said. Barnett Shale was the site the first horizontally drilled shale wells.

Exxon is in a position to take advantage of skyrocketing natural gas properties across the world. U.S. gas prices are up 75% year to date, Henry Hub settled at $5.01 per million British thermal units on Monday. These wells were among natural gas properties Exxon last year pinpointed as wanting to sell. In August XOM put about 5,000 natural gas wells in the Fayetteville Shale in Arkansas up for sale.

Exxon Mobil shares were slightly higher on the news Pre-market at $64.67 +0.30 (+0.47%)

Exxon is selling assets in Asia, Africa and Europe as it as focuses on production ventures in Guyana, offshore Brazil and the Permian Basin.

The Process

There has been no agreement reached on a sale and no buyer was identified Exxon spokesperson Sarah Nordin said as she confirmed the sale process. Production operations will continue normally during the marketing process,

Bids are due Dec. 21 and Exxon aims to close any sale in January. The properties’ shale gas production has declined by half since 2016, to around 227 million cubic feet per day (mcfd) in the first half of this year, according to a marketing document seen by Reuters.

Source: Reuters

From The TradersCommunity US News Desk