EXCO ResourcesAnnounces Sale of Certain Mid-Continent and East Texas Producing Assets
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DALLAS--(Business Wire)--
EXCO Resources, Inc. (NYSE: XCO) ("EXCO") today announced that it has reached an
agreement with Encore Operating, L.P., (NYSE: EAC) ("Encore") to sell its Norge
Marchand Unit in Grady County, Oklahoma, other selected Oklahoma, Kansas and
Texas Panhandle assets, and its Gladewater Field and Overton Field assets in
Gregg, Upshur and Smith Counties, Texas for $375 million, subject to customary
purchase price adjustments.
As of December 31, 2008, the properties include estimated proved reserves of 4.7
million barrels of oil (Mmbbls) and 148 billion cubic feet (Bcf) of natural gas,
or 176 billion cubic feet of natural gas equivalent (Bcfe), based on year-end
SEC pricing. Current net production includes 1,223 barrels of oil per day and
26.9 million cubic feet per day of natural gas, or 34.1 million cubic feet of
natural gas equivalent per day. The sale includes approximately 66,700 net
acres, of which approximately 7,000 acres are undeveloped, and also includes
gathering systems and compression attributable to certain of the assets.
The sale to Encore is expected to close in August 2009, subject to customary
closing conditions, and is effective as of April 1, 2009.
Douglas H. Miller, EXCO`s Chief Executive Officer, commented, "As we have
previously announced, we have elected to sell certain non-strategic assets, and
this sale is a part of that effort. We have now reached agreement on nearly $450
million of such asset sales and will continue our efforts."
EXCO was advised by Scotia Waterous (USA) Inc. and Tristone Capital, LLC in
these transactions.
EXCO Resources, Inc. is an oil and natural gas exploration, exploitation,
development and production company headquartered in Dallas, Texas with principal
operations in East Texas, North Louisiana, Appalachia, West Texas and the
Mid-Continent.
Additional information about EXCO Resources, Inc. may be obtained by contacting
EXCO`s Chairman, Douglas H. Miller, or its President, Stephen F. Smith, at
EXCO`s headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone
number (214) 368-2084, or by visiting EXCO`s website at www.excoresources.com.
EXCO`s SEC filings and press releases can be found under the Investor Relations
tab.
This release may contain forward-looking statements relating to future financial
results, business expectations and business transactions.Business plans may
change as circumstances warrant.Actual results may differ materially from those
predicted as a result of factors over which EXCO has no control.Such factors
include, but are not limited to: estimates of reserves, commodity price changes,
regulatory changes and general economic conditions.These risk factors and
additional information are included in EXCO`s reports on file with the
Securities and Exchange Commission.EXCO undertakes no obligation to publicly
update or revise any forward-looking statements.
The SEC has generally permitted oil and natural gas companies, in filings made
with the SEC, to disclose only proved reserves that a company has demonstrated
by actual production or conclusive formation tests to be economically and
legally producible under existing economic and operating conditions.We use the
terms "probable," "possible," "potential," "unproved," or "potential," to
describe volumes of reserves potentially recoverable through additional drilling
or recovery techniques that the SEC`s guidelines prohibit us from including in
filings with the SEC.These estimates are by their nature more speculative than
estimates of proved reserves and accordingly are subject to substantially
greater risk of being actually realized by the company.While we believe our
calculations of unproved drillsites and estimation of unproved reserves have
been appropriately risked and are reasonable, such calculations and estimates
have not been reviewed by third party engineers or appraisers.Investors are
urged to consider closely the disclosure in our Annual Report on Form 10-K for
the year ended December 31, 2008 available on our website at
www.excoresources.com under the Investor Relations tab or by calling us at
214-368-2084.
EXCO Resources, Inc.
Douglas H. Miller, 214-368-2084
Chairman
or
Stephen F. Smith, 214-368-2084
President
Copyright Business Wire 2009
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