General News | Deals - Joint Ventures | Bankruptcy / Restructure Update | Capital Markets

Amidst Bankrupty, EXCO Updates Ops, Settles with Shell in the Marcellus

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   |    Thursday,December 13,2018

Even though the company is in the middle of a bankruptcy filing, EXCO Resources provided a recent update on its operations in its recent 10Q form filing.

Haynesville / Bosser - JV with Shell

The East Texas and North Louisiana regions are primarily comprised of our Haynesville and Bossier shale assets. We have a joint venture with a wholly owned subsidiary of Royal Dutch Shell, covering an undivided 50% interest in the majority of our Haynesville and Bossier shale assets in East Texas and North Louisiana.

The East Texas and North Louisiana regions also include certain assets outside of the joint venture in the Haynesville and Bossier shales. We serve as the operator for most of our properties in the East Texas and North Louisiana regions.

Appalachia - Settles with Shell / Acquires Interest

The Appalachia region is primarily comprised of our Marcellus shale assets. We had a joint venture with Shell covering our Marcellus shale and other assets in the Appalachian region.

EXCO and Shell each owned an undivided 50% interest in the Appalachia JV and a 49.75% working interest in the Appalachia JV’s properties.

The remaining 0.5% working interest is held by an entity that operates the Appalachia JV’s properties (OPCO), which was previously jointly owned by EXCO and Shell. On February 27, 2018, we closed a settlement agreement with a subsidiary of Shell to resolve arbitration regarding our right to participate in an area of mutual interest in the Appalachia region.

As a result of the Appalachia JV Settlement, we acquired Shell’s interests in hia JV and OPCO.