Exxon Agrees to Buy Oklahoma Shale for $147.5 Million From BNK

Exxon Mobil Corp. (XOM) agreed to buy most of the Tishomingo Field assets in Oklahoma from BNK Petroleum Inc. (BKX) for $147.5 million, expanding shale exploration in the state.

Exxon Mobil’s XTO Energy unit will acquire BNK’s Woodford shale fields in a transaction expected to close in late April, Camarillo, California-based BNK said today in a statement. BNK will keep its rights in the Caney and upper Sycamore formations in the field, the company said in the statement.

Exxon Mobil spokesman Alan Jeffers confirmed the sale in an e-mail statement.

BNK will use the funds from the sale to increase drilling of wells in the Caney Field and to pursue exploration in Europe on its own or with partners, the company said in the statement. The proceeds will also be used to repay a credit facility.

BNK is setting up another drilling rig for its next planned Caney well and has contracted the rig for two wells with the option for an additional two wells, the company said.

Macquarie Capital Markets Canada Ltd. was the lead financial adviser to BNK.

To contact the reporter on this story: Mark Chediak in San Francisco at mchediak@bloomberg.net

To contact the editor responsible for this story: Sylvia Wier at swier@bloomberg.net

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March 6 (Bloomberg) -- Exxon Mobil Chief Executive Officer Rex Tillerson talks about the death of Venezuelan President Hugo Chavez and the outlook for the company's business strategy. Tillerson speaks at a news conference following a meeting with investors in New York. (Source: Bloomberg)