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Exxon strikes $750m deal with BKV for Barnett Shale assets

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ExxonMobil has signed an agreement with subsidiaries of BKV Corporation for the sale of operated and non-operated Barnett Shale gas assets in Texas.

The deal will see the group pay $750 million for the north Texas assets, with additional payments contingent on future natural gas prices.

Exxon said the assets sold are part of North American gas resources s operated by its subsidiaries, XTO Energy and Barnett Gathering, and were removed from its 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.”

As part of the agreement, all employees with ExxonMobil subsidiaries in the region will receive full employment offers with BKV, the supermajor said.

The sale is expected to close in the second quarter of 2022.

In 2020, Devon Energy completed the sale of its remaining position in the Barnett shale for $770m to Denver-based private equity firm Kalnin Ventures. Backed by Thai giant Banpu, the deal saw operations in the Barnett taken over by Kalnin-owned BKV.

The deal included more than 320,000 gross acres and 4,200 producing wells, and made BKV the largest natural gas producer in the play.

it also holds around 36,800 acres in Pennsylvania’s Marcellus shale, with current production of 150 million cubic feet per day, according to the company’s website.

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