DALLAS, April 28 /PRNewswire-FirstCall/ — EXCO Resources, Inc. (NYSE: XCO) today announced the closing of an acquisition of 100% of the equity interest in a privately-held natural gas development and production company operating in the Appalachian Basin, with properties principally located in Pennsylvania, Ohio, New York and West Virginia. The aggregate cash purchase price paid was $115 million, including the repayment of the acquired company’s debt and outstanding commodity hedges. The acquisition includes 162 Bcfe of proved reserves which are 96% natural gas and 25% proved developed producing. Probable and possible reserves are estimated to be an additional 51 Bcfe. There are 1,187 wells producing approximately 5.0 Mmcfe per day with an approximate 80% average working interest and 68% average net revenue interest. Approximately 85% of the wells are operated. The assets include 178,000 acres held by production and over 2,000 estimated drilling locations of which 68% are proved. In addition, the assets include 358 miles of gathering lines, two field shops and production equipment. EXCO will implement a multi-year, multi-rig drilling program on the acreage acquired. This acquisition was financed using EXCO’s revolving credit facility.
This acquisition, made through EXCO’s wholly-owned subsidiary, North Coast Energy, Inc., represents an important addition to EXCO’s substantial existing assets in the Appalachian Basin.
Wachovia Securities represented the seller in this transaction.
EXCO Resources, Inc. is a public oil and natural gas acquisition, exploitation, development and production company headquartered in Dallas, Texas with principal operations in Texas, Colorado, Ohio, Oklahoma, Pennsylvania, and West Virginia.
Additional information about EXCO Resources, Inc. may be obtained by contacting EXCO’s President, Stephen F. Smith, at EXCO’s headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by visiting our website at http://www.excoresources.com . Our 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 or business expectations. 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: acquisitions, recruiting and new business solicitation efforts, estimates of reserves, commodity price changes, the extent to which EXCO is successful in integrating recently acquired businesses, 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.
SOURCE EXCO Resources, Inc.
CONTACT: Stephen F. Smith, President of EXCO Resources, Inc.,
1-214-368-2084
Web site: http://www.excoresources.com
(XCO)