The company said that it has now a material position in a new oil shale program with significant resource and production potential.
El Paso remains committed to managing its E&P program for returns and having E&P live within its means.
In addition, the company remains committed to generating free cash flow in 2012.
To that end, the $180m cost of the acquired acreage will be funded over time through portfolio rationalization, and future development capital will compete with other programs in the portfolio.
El Paso Exploration & Production president Brent Smolik said that its acreage acquisition is the culmination of an extensive regional study by its technical team, and we expect it to become a new oil-focused core area.
"Today’s announcement represents our second organic shale entry following our successful acquisition of more than 170,000 net acres in the Eagle Ford shale," Smolik said.
