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UPDATE 1-EXCO sees 2011 production up 40 pct on higher capex
November 29, 2010 / 1:18 PM / 7 years ago

UPDATE 1-EXCO sees 2011 production up 40 pct on higher capex

* Sets capital budget of $976.2 mln for 2011

* Plans to spend $757 mln on BG Group JV

Nov 29 (Reuters) - EXCO Resources Inc (XCO.N), the target of a $4.36 billion buyout bid by its CEO, said it expects to raise production by 40 percent in 2011 and almost doubled its capital budget to $976.2 million.

The Dallas-based oil and gas company plans to spend $757 million within its East Texas/North Louisiana joint venture with British gas producer BG Group BG.L, which had bought a 50 percent interest in shale gas assets in eastern United States’ Appalachia from EXCO in May. [ID:nLDE6490DB]

“This capital program maintains our current level of activity reflecting our 2010 acquisitions in the Shelby Trough and expansion of our development and exploration activities in Appalachia,” the company said.

EXCO had agreed to buy some Haynesville and Bossier shale assets from Southwestern Energy (SWN.N). [ID:nSGE65F0JB]

For 2010, EXCO had forecast production of 315-330 million cubic feet equivalent per day (mmcfed), compared with 351 mmcfed in 2009.

For the current year, it sees capital expenditures of $496.8 million.

EXCO shares, up by about a third since the offer from its CEO on Nov. 1, closed at $18.45 on Friday on the New York Stock Exchange. (Reporting by Krishna N. Das in Bangalore; Editing by Don Sebastian)

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