XTO Energy Inc., Fort Worth, Texas, (NYSE: XTO) plans to acquire producing properties in East Texas and Mississippi from Total E&P USA Inc. (NYSE: TOT) for $300 million. The properties are estimated to have proved reserves of some 120 billion cubic feet of gas equivalent (60% proved developed; 95% gas) and will initially add production of about 15 million cubic feet of gas per day. Approximately 75% of the acquired reserves are in the company's Sabine Uplift region of East Texas, expanding XTO's presence in the Carthage Field and establishing a new position in the Bethany Field. The remaining reserves are located in the Maben Field of Mississippi. "We continue to acquire great producing properties, from the majors, which build opportunities for the future," says Keith A. Hutton, XTO president. "The properties in the Sabine Uplift complement our ongoing development program with long-lived production and additional inventory. In Mississippi, the Maben Field offers potential to increase productivity through different stimulation techniques, uphole recompletions and new horizontal and vertical well targets. As always, our team will remain focused on pursuing bolt-on acquisitions throughout the year." The transaction is expected to close by the end of February.
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