Exco lands East Texas assets

Tag : Drill Cotton

Exco’s average working interest in the properties isapproximately 94% with an average net revenue interest of 72%.
The company’s estimate of net proved reserves acquired is 109billion cubic feet equivalent and estimated total net reserves(proved, probable and possible) exceed 370 Bcfe exclusive ofBossier/Haynesville shale potential.
The assets include producing properties with more than 15 Mmcfe perday of net production from 83 producing wells and about 11,000gross acres.
Exco estimates that there are more than 500 additional drillinglocations in the Cotton Valley and Travis Peak formations, of which92 are proved.
Exco will operate the field and estimates a capital budget of $20million to drill 9 wells during the remainder of the year.
A majority of the acquired leasehold covers rights to all depths,including the Bossier/Haynesville shale.
Exco plans to drill at least one vertical well this year to furtheroutline potential of the Bossier/Haynesville, and Exco estimatesthat there could be more than 100 potential shale locations acrossthe acquired acreage.
The acquisition of these properties will be financed with a $300million senior unsecured term loan due 15 December at theirunrestricted subsidiary, Exco Operating Company formerly known asExco partners operating partnership.