[Summary: Exco Resources has signed an agreement with a subsidiary of Venado Oil & Gas to divest properties in South Texas for $300 million.
Property Details:
- Eagle Ford properties located in Zavala, Frio and Dimmit counties in Texas
- Production of 4,100 BOE per day (~90% oil) during December 2016
The Company expects the transaction to close in June 2017. BMO Capital Markets served as the Company's exclusive financial advisor for the transaction.]
EXCO Resources, Inc. (NYSE:XCO) (“EXCO” or the “Company”) announces the execution of a definitive agreement with a subsidiary of Venado Oil and Gas, LLC, an affiliate of KKR, to divest its oil and natural gas properties in South Texas. The purchase price of $300 million is subject to customary closing conditions and adjustments based on an effective date of January 1, 2017. The properties to be divested include the Company's interests in oil and natural gas properties and surface acreage in Zavala, Frio and Dimmit counties in Texas. These properties produced approximately 4,100 BOE per day (~90% oil) during December 2016. The Company expects the transaction to close in June 2017.
EXCO's planned divestiture of the South Texas oil and natural gas properties represents an important step in its portfolio optimization initiative and will improve its financial flexibility. The Company intends to use the proceeds to fund drilling and development of its core Haynesville and Bossier shale assets in North Louisiana and East Texas and for other general corporate purposes. After the closing of the sale, the borrowing base under the Company's revolving credit agreement (“Credit Agreement”) will be $100 million. The next borrowing base redetermination under the Credit Agreement is set to occur in November 2017.
BMO Capital Markets served as the Company's exclusive financial advisor for the transaction.
About EXCO
EXCO Resources, Inc. is an oil and natural gas exploration, exploitation, acquisition, development and production company headquartered in Dallas, Texas with principal operations in Texas, Louisiana and Appalachia.
Related Categories :
Gulf Coast - South Texas News >>>
-
Chesapeake Energy Q4, Full Year 2022 Results; IDs $1.8B 2023 Capex
-
Amplify Energy Adds Finance Exec to Board -
-
Japanese Conglomerate Exits Shale Biz with Sale of Eagle Ford Asset -
-
ConocoPhillips Fourth Quarter, Full Year 2020 Results -
-
Chesapeake IDs 2021 Budget; Focuses on Appalachia, Ark-La-Tex Assets