(Reuters) – Exxon Mobil on Tuesday launched the sale of shale fuel properties stretching throughout 27,000 acres within the Appalachian basin of Ohio, the corporate confirmed, a part of an ongoing divestiture of U.S. property.
The highest U.S. oil producer is advertising and marketing 61 wells that final yr produced round 81 million cubic ft per day equal (mmcfd) of pure fuel, in response to a advertising and marketing doc seen by Reuters. The sale consists of one other 274 wells operated by different corporations.
A sale might worth the property at round $200 million based mostly on present pure fuel costs and present manufacturing from the wells, an individual acquainted with the matter stated.
“ExxonMobil is offering data to 3rd events which will have an curiosity within the property, however no settlement has been reached and no purchaser has been recognized,” stated spokeswoman Sarah Nordin. Operations are persevering with, she added.
The corporate in 2020 took a couple of $20 billion writedown on properties, primarily bought with subsidiary XTO Power a decade earlier. It eliminated fuel property in Appalachia, the Rocky Mountains, Oklahoma, Texas and elsewhere from its improvement plan after the writedown.
The Ohio properties produced round 250 mmcfd of fuel in 2017 and are amongst property that Exxon put available on the market because it focuses improvement in Guyana, offshore Brazil and Texas’s Permian Basin shale area.
U.S. pure fuel futures settled at $4.219 on Tuesday, up greater than 80% because the finish of 2020.
The corporate three years in the past set a aim of elevating $15 billion from asset gross sales, and final yr accelerated its advertising and marketing efforts as power costs recovered from the pandemic. (This story corrects pure fuel settlement worth to $4.219 from $2.249 in paragraph 7)
Reporting by Shariq Khan; Modifying by Cynthia Osterman