ExxonMobil and Noble Energy have announced large acquisitions in the Permian Basin in New Mexico and Texas (United States).
ExxonMobil will acquire companies owned by the Bass family, with an estimated resource of 3.4 Gboe in New Mexico’s Delaware Basin, of which 75% is liquids. The acquired companies, which include the operating entity BOPCO, hold about 1,112 km² of leasehold, and production of more than 18,000 boe/d, about 70% of which is liquids. This includes about 1,000 km² of leasehold in the Permian Basin, with more than 60 Gboe estimated in place. ExxonMobil will make an upfront payment of US$5.6bn in ExxonMobil shares, and a series of additional contingent cash payments totalling up to US$1bn, to be paid beginning in 2020 and ending no later than 2032 commensurate with the development of the resource.
In addition, Noble Energy has approved the acquisition of Clayton Williams Energy for US$2.7bn in Noble Energy stock and cash. The acquisition includes nearly 290 km² in the core of the Southern Delaware Basin in Reeves and Ward counties in Texas, plus an additional 405 km² in other areas of the Permian Basin. Total resource potential is estimated at more than 1 Gboe in the Wolfcamp zones, with significant upside potential in other zones. Noble Energy plans to increase production on the acquired assets from 10 mboe/d currently (70% oil) to approximately 60 mboe/d in 2020. Closing is expected in the second quarter of 2017 and is subject to customary regulatory approvals, approval by the holders of a majority of Clayton Williams Energy common stock, and certain other conditions.