DALLAS--(BUSINESS WIRE)--Jun. 29, 2009--
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.
Source: EXCO Resources, Inc.
EXCO Resources, Inc.
Douglas H. Miller, 214-368-2084
Chairman
or
Stephen
F. Smith, 214-368-2084
President