* To consider CEO’s buyout proposal
* Proved reserves at 1.5 tcfe, up from 959 bcfe in 2009 * Projects total net resource potential to be 11.3 tcfe
Jan 13 (Reuters) - Oil and gas company EXCO Resources Inc (XCO.N) said it will explore strategic alternatives, including a buyout proposal from its chief executive -- a deal backed by oilman T. Boone Pickens.
In November, EXCO’s CEO Douglas Miller had teamed up with investors to bid for the gas-focused explorer for about $4.36 billion, or $20.50 per share, betting on a recovery in natural gas prices. [ID:nSGE6A00GV]
Shares of the company, with a market value of about $4.05 billion, closed at $19.34 on Wednesday on the New York Stock Exchange. They have risen 30 percent since the buyout offer was announced.
The company said it entered into a deal with CEO Miller, who currently has a 2.15 percent stake in the company, to stop him from acquiring additional shares of EXCO common stock.
Separately, EXCO said its proved reserves at last year end are estimated at 1.5 trillion cubic feet equivalent (tcfe), up 56 percent from 959 bcfe at year-end 2009.
Based on the projected 2010 production of 112 bcfe, its reserve life equates to 13.4 years, the company said.
EXCO, which derives most of its revenue from natural gas, said it estimates total net resource potential to be about 11.3 tcfe as of December end. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Jarshad Kakkrakandy, Unnikrishnan Nair)