January 12, 2022 Read More →

ExxonMobil plans sale of Appalachian shale gas properties

Reuters:

Exxon Mobil (XOM.N) on Tuesday launched the sale of shale gas properties stretching across 27,000 acres in the Appalachian basin of Ohio, the company confirmed, part of an ongoing divestiture of U.S. assets.

The top U.S. oil producer is marketing 61 wells that last year produced around 81 million cubic feet per day equivalent (mmcfd) of natural gas, according to a marketing document viewed by Reuters. The sale includes another 274 wells operated by other companies.

A sale could value the assets at around $200 million based on current natural gas prices and existing production from the wells, a person familiar with the matter said.

“ExxonMobil is providing information to third parties that may have an interest in the assets, but no agreement has been reached and no buyer has been identified,” said spokeswoman Sarah Nordin. Operations are continuing, she added.

The company in 2020 took about a $20 billion writedown on properties, primarily purchased with subsidiary XTO Energy a decade earlier. It removed gas assets in Appalachia, the Rocky Mountains, Oklahoma, Texas and elsewhere from its development plan after the writedown.

[Shariq Khan]

More: Exxon Mobil launches sale of U.S. shale gas properties -marketing document

Comments are closed.