) unit - XTO Energy - has entered into a purchase deal with
California-based oil and gas producer BNK Petroleum Inc. for the
majority of Tishomingo Field assets in Oklahoma. The purchase
price is approximately $147.5 million.
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XTO Energy will win rights over Tishomingo Field in the Woodford
shale formation in southeastern Oklahoma, post purchase. BNK
Petroleum will however retain its hold over the Caney and upper
Sycamore formations. The transaction is expected to close in late
BNK is likely to use the funds raised from the sale to speed up
its drilling activities in the Caney section and pursue
exploration in Europe. It will also use the proceeds to pay back
Only last week, ExxonMobil announced a 45% growth target for
North America oil and gas output over the coming 3 decades. The
latest purchase is in sync with this strategy as it will enhance
shale exploration in the region.
The U.S. shale formations, Canadian oil sands projects and the
Gulf of Mexico (GoM) are likely to be the key catalysts for
growth. Their easy accessibility and relatively economical
production have attracted several oil majors, including
Further, several technological developments have been made to tap
oil and gas from shale-rock formations as well as extracting oil
and gas from oil sands and deep-water prospects in North America.
These efforts have changed the energy outlook for the region.
ExxonMobil holds a Zacks Rank #3, which is equivalent to a
short-term Hold rating. However, the Zacks Ranked #1 stocks of
Range Resources Corporation
EPL Oil & Gas, Inc.
) are expected to outperform the market over the next few months.