XOM Exxon Mobil Corp

XTO Energy and ExxonMobil Sign Farm-Out Agreement to Development Piceance Basin Acreage FORT WORTH, Texas, June 30 /PRNewswire-FirstCall/ -- XTO Energy Inc. (NYSE:XTO) announced today it has executed an agreement with Exxon Mobil Corporation (NYSE:XOM) to develop acreage in the northeastern portion of the Piceance Basin in northwest Colorado. The arrangement will allow ExxonMobil and XTO to leverage their respective strengths to maximize the value of these assets. Under the terms of the deal, XTO will farm-in approximately 69,500 contiguous gross acres east of ExxonMobil's Piceance Creek Unit in Rio Blanco and Garfield counties. XTO Energy will operate and earn 50% working interest ownership in the entire leasehold position by drilling four wells. XTO anticipates the first well, targeting the Williams Fork (Mesaverde) formation, to commence drilling by year-end 2005. "This deal highlights another success in partnering with the majors to create mutually beneficial opportunities -- whether acquisitions, trades or joint ventures," stated Bob R. Simpson, Chairman and Chief Executive Officer. "XTO Energy has earned a solid reputation with our operational track-record. We are proud that our team will put its expertise, focus and determination to work on this project." Keith A. Hutton, President, further comments, "The Piceance Basin is an ideal addition to our tight-gas and unconventional property base. This acreage position exposes XTO to a portion of the trillions of cubic feet of natural gas the basin is projected to hold. Now, we move forward with our drilling plans, evaluate the results and look towards successful execution for the future." XTO Energy Inc. is a domestic energy producer engaged in the acquisition, development and discovery of quality, long-lived oil and natural gas properties in the United States. Its properties are concentrated in Texas, New Mexico, Arkansas, Oklahoma, Kansas, Wyoming, Colorado, Alaska, Utah and Louisiana. This release can be found at http://www.xtoenergy.com/ . Statements made in this news release, including those relating to drilling timeline, earning an interest in the leasehold, potential reserves and successful execution drilling plans are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks and uncertainties and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the ability to obtain drilling permits, the availability of drilling equipment and personnel, the timing and results of drilling activity and higher than expected production costs and other expenses. The Company undertakes no obligation to publicly update or revise any forward-looking statements. Further information on risks and uncertainties is available in the Company's filings with the Securities and Exchange Commission, which are incorporated by this reference as though fully set forth herein. Reserve estimates and estimates of reserve potential or upside with respect to the farmed-in acreage were made by our internal engineers without review by an independent petroleum engineering firm. Data used to make these estimates were furnished by the other party and may not be as complete as that which is available for our owned properties. We believe our estimates of proved reserves comply with criteria provided under rules of the Securities and Exchange Commission. DATASOURCE: XTO Energy Inc. CONTACT: Louis G. Baldwin, Executive Vice President & Chief Financial Officer, or Gary D. Simpson, Senior Vice President, Investor Relations & Finance, both of XTO Energy Inc., +1-817-870-2800 Web site: http://www.xtoenergy.com/

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