EXCLUSIVE Exxon to sell Arkansas shale gas assets to Flywheel Energy

Signage is seen at an Exxon gas station in Brooklyn, New York, U.S. November 23, 2021. REUTERS/Andrew Kelly

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  • Exxon’s XTO sells 5,000 natgas wells in the Fayetteville shale
  • Deal comes as global gas prices and demand soar
  • Buyer is Oklahoma private producer Flywheel Energy

HOUSTON, Aug 26 (Reuters) – Exxon Mobil Corp (XOM.N) has reached an agreement with Flywheel Energy to sell natural gas properties to the U.S. oil and gas producer in Arkansas, a spokesman confirmed on Friday. of Exxon.

The sale of Exxon’s Fayetteville Shale assets brings the biggest US producer closer to its goal of selling $15 billion of non-essential properties to focus on more lucrative prospects. The value of the proposed deal could not be immediately known.

US gas prices and properties have risen in demand this year as global fuel demand has soared over the conflict in Ukraine. US gas futures settled at around $9.30 per million British thermal units on Friday, up 160% year-to-date. Read more

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“The sale advances Exxon Mobil’s strategy to focus investment in the most favored assets,” Exxon spokeswoman Julie King told Reuters.

Flywheel Energy did not immediately respond to requests for comment on the deal signed with XTO Energy, a subsidiary of Exxon. Flywheel is headquartered in Oklahoma City and is backed by Kayne Anderson Private Energy Income Funds.

Assets under contract include approximately 5,000 natural gas wells – 850 operating and approximately 4,100 non-operating – as well as pipelines and related processing properties on approximately 381,000 acres.

Exxon’s XTO Energy unit had acquired the Fayetteville assets in 2010 for $650 million during a shale boom that reshaped the US energy landscape. King declined to comment on pricing, saying the terms of the transaction are confidential.

The sale is subject to regulatory and other approvals. It is expected to close before the end of October, King said.

The oil giant has unveiled plans to offer its Fayetteville and other U.S. shale assets outside the Permian Basin in 2020. Last year, it actively resumed its divestment program as oil prices energy were recovering from the fall caused by the pandemic.

Exxon has dumped projects in Asia, Africa and Europe for offshore Guyana and Brazil and shale oil in the Permian Basin of West Texas and New Mexico.

Earlier this year, it sold North Texas shale assets to Denver-based BKV, a gas producer majority-owned by Thai energy company Banpu PCL (BANPU.BK), for $750 million. Read more

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Reporting by Sabrina Valle in Houston; Editing by Leslie Adler

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