ExxonMobil still adding Permian acres months after $5.6B purchase

By Luke Geiver | October 02, 2017

After purchasing 250,000 Permian Basin acres for $5.6 billion in February, ExxonMobil’s push to acquire acreage in the Permian has cooled, but this week the company announced more acquisitions in the Delaware and Midland Basins. Since May, the oil major has added an additional 22,000 acres through purchases or trades.

ExxonMobil is one of the most active in the Permian and currently has 19 drilling rigs running. The majority of its current focus is within the Midland Basin portion of the greater Permian. There, the company has 14 drilling rigs all working on horizontal wells.

In New Mexico, the other four drilling rigs are targeting the Delaware Basin with horizontal laterals, one of which was drilled to 12,500 feet.

“We continue to build on our strong position in the Permian,” said Jack Williams, senior vice president of ExxonMobil. “Our leading presence in the Permian, from equity production through to Gulf Coast refining capacity,” he said, “positions us well for the future.”

XTO Energy Inc., the E&P arm of ExxonMobil, also announced this month that it has begun working to further reduce methane emissions from its oil and natural gas operations across the U.S.

Through its efforts, the company plans to phase-out high-bleed pneumatic equipment that is used to control valves at the well site. “We will also continue to focus on leak-detection, operational training and improvements in facility designs,” said Sara Ortwein, president of XTO. “In particular, we’re looking forward to applying this approach to our planned expansion in the Permian Basin in New Mexico and West Texas.”