Wednesday, June 1, 2011

Marathon Oil (MRO) Acquiring Oil, Gas Fields in Texas for $3.5 Billion

Marathon Oil (NYSE:MRO) announced it will spend $3.5 billion to acquire natural gas and oil properties in Texas, as it attempts to increase production from inland sources.

The energy giant made the agreement with partnership Hilcorp Resources.

Marathon said its goal is to increase current production of 7,000 barrels of oil equivalent per day to 80,000 barrels per day by 2016. They'll do that by drilling new wells on the approximate 141,000 acres they're purchasing in the Eagle Ford shale formation.

According to Marathon, at this time the existing 36 wells on the property are for the most part producing crude oil and condensate.

The company added that with other acquisitions in Eagle Ford this year the combined acreage they own there will rise to about 285,000 net acres.

Marathon was trading at $53.11, falling $1.06, or 1.96 percent, as of 10:11 AM EDT.

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