Top US oil producer ExxonMobil has confirmed the sale of US shale gas properties stretching across 27,000 acres in the Appalachian basin of Ohio as part of its ongoing divestiture of US assets.
ExxonMobil said that it is marketing 61 wells that last year produced around 81 million cubic feet per day equivalent of natural gas, according to a marketing document viewed by Reuters. The sale includes another 274 wells operated by other companies.
Based on current natural gas prices and existing production from the wells, a sale is expected to value the assets at around $200 million, a person familiar with the matter said.
"ExxonMobil is providing information to third parties that may have an interest in the assets, but no agreement has been reached and no buyer has been identified," said spokeswoman Sarah Nordin.
The company in 2020 took about a $20 billion write-down on properties, primarily purchased with subsidiary XTO Energy a decade earlier. It removed gas assets in Appalachia, the Rocky Mountains, Oklahoma, Texas, and elsewhere from its development plan after the write-down.
The shale gas properties in Ohio produced around 250 mmcfd of gas in 2017 and are among assets that Exxon put on the market as it focuses development in Guyana, offshore Brazil, and Texas's Permian basin shale field.