Profile: EXCO Resources Inc (XCO.N)
11 Mar 2014
EXCO Resources, Inc. (EXCO Resources), incorporated in October 17, 1955, is an independent oil and natural gas company engaged in the exploration, exploitation, development and production of onshore the United States oil and natural gas properties with a focus on shale resource plays. Its operations are conducted in the United States oil and natural gas areas, including East Texas, North Louisiana, Appalachia and the Permian Basin in West Texas. In addition to its oil and natural gas producing operations, it owns 50% interests in two midstream joint ventures located in East Texas/North Louisiana and Appalachia. In July 2013, EXCO Resources Inc closed its previously announced acquisition of producing and undeveloped oil and gas assets in the Haynesville shale formation (Haynesville) from subsidiaries of Chesapeake Energy Corporation. In July 2013, the Company acquired Eagle Ford.
As of December 31, 2012, the Company’s proved reserves were approximately 1 trillion cubic feet equivalents, of which 92.7% were natural gas and 96.3% were proved developed reserves. Its shale resource plays and midstream operations are conducted through four joint ventures with affiliates of BG Group plc (BG Group), which include East Texas/North Louisiana JV, TGGT, Appalachia JV and Appalachia Midstream JV. The East Texas/North Louisiana area is consisted of the Haynesville and Bossier shale plays and the Cotton Valley sand trend, which covers portions of the East Texas Basin and the Northern Louisiana Salt Basin. It produces tight gas sand reservoirs from the Cotton Valley, Travis Peak, Pettet and Hosston formations.
The Haynesville shale play is a natural gas plays in the United States. Its Haynesville shale acreage is located in DeSoto and Caddo Parishes in Louisiana, and in Harrison, Panola, Shelby, San Augustine and Nacogdoches counties in Texas. A portion of its acreage is held by its existing Haynesville, Cotton Valley, Hosston and Travis Peak production. Its drilling program in the Haynesville shale play is concentrated in its two core areas, DeSoto Parish and the Shelby Area. As of December 31, 2012, it spud 391 operated horizontal wells and produced approximately 1.0 trillion cubic feet of gross natural gas to sales. As of December 31, 2012, it averaged a gross operated daily shale gas production rate of approximately 1.1 billion cubic feet per day.
The Company develops DeSoto Parish on 80-acre spacing in a manufacturing mode utilizing multi-well pad development. Its manufacturing process involves four drilling rigs per 640-acre unit to drill all wells in the unit, followed by two fracture stimulation fleets to complete all wells in the unit. As of December 31, 2012, it had developed 34 units on 80-acre spacing. As of December 31, 2012, it had three drilling rigs running in the area and a total of 301 horizontal wells flowing to sales.
As of December 31, 2012, the Company had been no drilling rigs running in the area. As of December 31, 2012, it had a total of 70 horizontal wells flowing to sales with a total gross production rate of approximately 131.2 million cubic feet per day.
Cotton Valley, Hosston, Travis Peak, Pettet
The Vernon Field in Jackson Parish, Louisiana produces from the lower Cotton Valley and Bossier Sand formations at depths ranging from 12,000 to 15,000 feet. It has additional acreage and production in Caddo and DeSoto Parishes, Louisiana, in four fields: Holly, Kingston, Caspiana and Longwood. It also has acreage and production in Harrison, Panola, and Gregg Counties in Texas, across three fields, which include Carthage, Waskom, and Danville. As of December 31, 2012, it had a total of 915 wells flowing to sales with a total gross operated production rate of approximately 124.1 million cubic feet equivalents per day.
The Appalachian Basin includes portions of the states of Kentucky, New York, Ohio, Pennsylvania, Virginia, West Virginia and Tennessee and covers an area of over 185,000 square miles. Its operations in the area have included maintaining its existing production from shallow wells and testing its Marcellus shale acreage. As of December 31, 2012, it operated a total of 5,778 vertical shallow wells flowing to sales with a total gross production rate of approximately 33 million cubic feet per day. Its Pennsylvania area encompasses 17 counties. Its West Virginia area includes 27 counties and stretches from the northern to the southern areas of the state.
During the year ended December 31, 2012, the Company’s program was a combination of appraisal and development wells in Northeast Pennsylvania, which includes Sullivan and Lycoming Counties and Central Areas, which includes mainly Armstrong, Jefferson and Westmoreland counties. As of December 31, 2012, it had a total of 64 horizontal wells flowing to sales with a total gross production rate of approximately 120 million cubic feet per day. During 2012, it drilled and completed 31 gross (8.2 net) wells. In its Central Pennsylvania area, it has drilled mainly appraisal and spacing tests. During 2012, it drilled and completed 7 gross (3.3 net) wells. As of December 31, 2012, it had a total of 29 horizontal wells flowing to sales with a total gross production rate of approximately 37.4 million cubic feet per day.
The Permian Basin, located in West Texas and the adjoining area of southeastern New Mexico. Its activities are focused on conventional oil and natural gas properties.
Sugg Ranch Field
The Sugg Ranch Field is located in Irion County, Texas. The Company owns a 96.7% interest in the property. As of December 31, 2012, it had proved reserves of 4,363 thousand barrels of oil and 30,049 million cubic feet and 422 gross producing wells. Production is from the Canyon Sand from depths of 6,700 to 7,900 feet.
EXCO Resources Inc
Suite 1700, 12377 Merit Dr.
DALLAS TX 75251