Exxon Mobil buys Bass family holdings in Permian for $6.6 billion

[TexasTowelie]

FORT WORTH -- Exxon Mobil is buying 275,000 acres in the booming Permian Basin oil fields from the Bass family for $5.6 billion in stock and $1 billion in contingent cash payouts.

The Irving-based oil company said Tuesday that the purchase covers 3.4 billion barrels of oil equivalent, nearly doubling its existing resources in the Permian to 6 billion barrels. XTO Energy in Fort Worth, which was sold to the energy giant in 2010, will manage the project.

“This acquisition strengthens Exxon Mobil’s significant presence in the dominant U.S. growth area for onshore oil production,” Darren W. Woods, Exxon Mobil chairman and chief executive officer, said in a statement. “This investment gives us an exceptional Delaware Basin position in a proven multi-stacked play that can generate attractive returns in a low-price environment.”

Frank McCreight, a representative of Bass family’s energy holdings, could not be reached for comment. Other Bass representatives also declined to comment when contacted by the Star-Telegram. “The Bass family does not generally speak about business dealings,” one spokesman said.

Read more here: http://www.star-telegram.com/news/business/article126967634.html

[Paladin]

1. I hear that office space and homes in Midland are getting scarce.

Which I'm OK with---if there's going to be an oil boom-town, I'd rather have it in Texas than, say, North Dakota. And Lord knows, Midland has been through boom periods before; they know how to deal with it.