exxon buys a large us gas company, page-3

Hmmmm - it is a significant tick for shale derived gas onshore USA - Transaction equates to USD$2.96 per Mcf of proven reserves. We've got 20.4 Bcfe of 1P reserves and 72.9 Bcfe of 2P.

I wonder what the new land has added in 1P and 2P. More relevence to get on with drilling and prove up more 1P as 20.4 is nothing to write home about.

check this video comment

http://www.marketwatch.com/video/asset/exploring-exxons-deal-for-xto-2009-12-14/093A6FBE-F906-4F60-A5C5-7C17EE775516

extract from Marketwatch

"..........The fact that Exxon's biggest acquisition in a decade involved a U.S. gas producer says a couple of things about how management is sizing up the industry. Clearly, they see gas prices recovering, helped by the political climate in Washington and Copenhagen, where gas continues to hold its own as a cleaner-burning fossil fuel than oil or coal.

This is a key consideration in the arena of as power generation, where gas-fired power plants are the hands-down favorites compared with coal in terms of cost, permits and construction time.

It might take years for Exxon's bet to pay off, but for a company that doesn't have to fret over making payroll or margin calls, time is on its side.

As for the rest of the sector, Exxon has already forced them into a game of catch-up."


http://www.marketwatch.com/story/exxon-mobil-pounces-on-gas-2009-12-14

and

http://www.marketwatch.com/story/exxon-mobil-to-buy-xto-energy-in-41-billion-deal-2009-12-14