XTO Energy took its initial position in this region with a 1997 acquisition in the San Juan Basin and has since steadily continued to acquire additional producing properties while further developing long-lived reserves. With productive horizons from the shallow coal seams to the deeper Paradox, the San Juan Basin continues to provide high-margin opportunities today.
After expanding the region with acquisitions in the Raton Basin in 2003 and the Uinta Basin in 2004, XTO now operates a significant volume of coal bed methane gas (CBM), exceeding 220 MMcf per day (gross). Daily CBM volumes are projected to increase to over 350 MMcf over the next several years. In the conventional and tight sand activities, the Company's development programs continue to increase production and grow reserves. In the San Juan, the Fruitland coal development is expanding to thinner coals via horizontal drilling. Field production in the Raton Basin now exceeds 76 MMCFPD, up from 29 MMCFPD at the time of acquisition in 2003. In the Uinta Basin, XTO continues to expand the limits of the Natural Buttes field with 40-acre step-out wells. The 20-acre infill program in Natural Buttes shows minimal reduction in IP’s and EUR’s from 40-acre wells.
