ExxonMobil and Apache Announce Program to Expand Exploration and Development in Western Canada.IRVING, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to -- Exxon Mobil Corporation Exxon Mobil Corporation U.S.-based oil and gas company formed in 1999 through the merger of Exxon Corp. and Mobil Corp. It has investments and operations in petroleum and natural gas, coal, nuclear fuels, chemicals, and ores. (NYSE NYSE See: New York Stock Exchange :XOM XOM Exxon Mobil Corporation (stock symbol) XOM X/Open Object Management XOM OSI-Abstract-Data Manipulation API XOM Xml Object Model XOM X/Open Osi Abstract Data Manipulation ) and Apache Corporation today said they have signed an agreement to expand their successful exploration and development activities in the western Canadian province Noun 1. Canadian province - Canada is divided into 12 provinces for administrative purposes province, state - the territory occupied by one of the constituent administrative districts of a nation; "his state is in the deep south" of Alberta, building on a broader program announced in 2004. This work, like the previously announced program, will capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. each company's strengths. ExxonMobil's subsidiary, ExxonMobil Canada Energy, will farm out its interest in approximately 650,000 acres of additional undeveloped property interests to Apache Canada Ltd. over and above the more than 370,000 acres conveyed in 2004. Under the new agreement Apache also will test additional horizons in approximately 140,000 acres of the property conveyed in 2004. Apache will have access to 1,234 sections under the new agreement. Under the agreement announced today, Apache will drill and operate 145 new wells in both shallow and deep zones over a 36-month period with upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar for further drilling. ExxonMobil Canada will retain a 37.5 percent lessor royalty on fee lands, while on Crown leasehold it will retain 35 percent of its original working interest for any production resulting from the drilling program. "This agreement will enable our companies to more closely work together to develop a larger portfolio of exploration acreage in Western Canada," said Morris Foster, president, ExxonMobil Production Company. "It allows us to create more shareholder value from these assets by taking advantage of the relative strengths of both companies to increase both the near-term and long-term value of these prospects." "Apache is pleased to have the opportunity to expand our relationship with ExxonMobil in Canada. This latest extension allows Apache to add almost 800,000 acres to our existing 6.9 million acres on which to explore in one of the most prolific natural gas basins in North America," said G. Steven Farris, Apache chief executive officer, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. . "For ExxonMobil, it assures that a significant amount of its acreage will be evaluated with the drill bit." In May of 2004, the two companies announced a program of transfers and joint-venture activity aimed at increasing the realized value of their respective portfolios across a broad range of prospective and mature properties. These properties are located in West Texas, onshore Louisiana and the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east Continental Shelf, as well as western Canada. Under that agreement, ExxonMobil gained deep gas rights to certain Apache properties in the Gulf of Mexico and onshore Louisiana, while Apache gained access to ExxonMobil properties in western Canada, the Permian Basin of West Texas and New Mexico. Since the final agreement was signed in August 2004, Apache has drilled 86 wells and completed 73 wells with tested capacity of 52 million cubic feet per day. The wells will be brought on production over the coming months as pipeline and processing capacity is available. ExxonMobil is the largest crude oil producer in Canada, is a leading natural gas producer, and holds the largest resource position in Canada through its wholly owned affiliate, ExxonMobil Canada, and its majority-owned affiliate, Imperial Oil (ExxonMobil interest, 69.6 percent). Apache Corporation is a large oil and gas independent, with core operations in the United States, Canada, the United Kingdom North Sea, Australia and Egypt. Cautionary Statement: Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including resource recoveries, production rates, and project plans and schedules, could differ materially due to changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance; timely completion of development projects; technical or operating factors; and other factors discussed under the heading "Factors Affecting Future Results" included in Item 1 of ExxonMobil's most recent Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and posted on our website (www.exxonmobil.com). References to the "resources" include quantities of oil and gas that are not yet classified as proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. but that we believe will be produced in the future. |
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