Naperville, IL -- (ReleaseWire) -- 11/01/2012 -- ExxonMobil Corporation (Exxon), through its wholly-owned subsidiary XTO Energy Inc. (XTO), agreed to acquire Bakken shale assets in North Dakota and Montana from Denbury Onshore, LLC, a subsidiary of Denbury Resources Inc. (Denbury), for a purchase consideration of $1.6 billion in cash. In addition to the cash consideration, Denbury will receive Exxon’s interests in the Hartzog Draw field in Wyoming and Webster field in Texas. The transaction will have an effective date of July 1, 2012. According to the terms of the deal, Denbury will receive $1.6 billion in cash as well as operating interests in the Webster field (south east Texas) and Hartzog Draw field (north east Wyoming) from Exxon in exchange for the Bakken assets. Furthermore, Denbury has agreed to acquire incremental CO2 from the LaBarge field owned by Exxon or purchase an interest in the CO2 reserve of the field.
- Rationale behind Exxon acquiring Bakken shale assets in North Dakota and Montana.
- Rationale behind Exxon expanding its unconventional assets base in North America.
- Geography Covered- US
Reasons to buy
- Develop a sound understanding of Exxon expanding its unconventional assets base in North America.
- To know about Exxon's trend of inorganic growth.
- To understand Denbury's interest to increase its enhanced oil recovery business and fund its capital program.
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