XOM Exxon Mobil Corp

XTO Energy Purchases Permian Basin Properties From ExxonMobil Corporation FORT WORTH, Texas, July 5 /PRNewswire-FirstCall/ -- XTO Energy Inc. (NYSE:XTO) announced today the purchase of producing properties in the Permian Basin of West Texas and New Mexico from ExxonMobil Corporation (NYSE:XOM) of Irving, Texas, for $215 million with a transaction effective date of January 1, 2005. XTO Energy's internal engineers estimate long-lived proved reserves to be about 21.1 million barrels of oil equivalent (MMBOE), 75% of which are proved developed. The acquisition will initially add about 3,800 barrels of oil equivalent per day (BOE/d), of which 83% is oil. The Company is targeting a 25% production rate increase over the next two years. XTO will operate more than 70% of the value of these high-margin properties, which have a lease operating expense of about $7 per barrel. "This transaction highlights our ongoing focus in acquiring specific properties in regions where XTO has experience and a history of increasing production and reserves," stated Bob R. Simpson, Chairman and Chief Executive Officer. "In line with our 2004 acquisitions with both Exxon and ChevronTexaco, this Permian Basin package is an ideal overlay to our current operations. We continue to capture opportunities for XTO Energy that are consistent with our proven strategy of buying quality long-lived reserves, demanding strong economic returns and building a storehouse of substantial development upsides." The significant producing properties in the acquisition package include Vacuum Field of Lea County, New Mexico and Cordona Lake Field in Crane County, Texas. Vacuum Field contributes about 2,400 BOE/d of production from multiple zones including the Morrow, Penn, Abo, Clearfork, San Andres and Grayburg formations. Cordona Lake Field produces about 900 BOE/d from the Devonian formation. Other producing fields in the package include Goldsmith in Ector County, Texas, St. Lawrence in Glassock County, Texas and Blanco in Rio Arriba County, New Mexico. Upside reserve potential exists through extensive development of producing formations, reservoir recovery enhancements and operational improvements. Based on the January 1, 2005 effective date, the closing price was $200 million. Production volumes will be attributable to XTO beginning July 1, 2005. The Company anticipates funding the purchase through a combination of cash flow and bank debt. 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 proved reserves, upside reserve potential, daily production increase, production rate increase, lease operating expense, reserve life, economic returns, development upsides and method of financing 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 timing and results of drilling activity, higher than expected production costs and other expenses, availability of drilling equipment and personnel and inability to implement recovery enhancements or operational improvements. 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 pending acquisitions were made by our internal engineers without review by an independent petroleum engineering firm. Data used to make these estimates were furnished by the sellers 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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