EXCO Resources, Inc. today announced an agreement to acquire producing oil and natural gas properties, acreage and other assets in multiple fields located in the Mid-Continent, South Texas and Gulf Coast areas of Oklahoma and Texas from Anadarko Petroleum Corporation for $860 million in cash.
The acquisition includes assets in the Golden Trend, Watonga-Chickasha, Mocane-Laverne and Reydon areas in Oklahoma, and the Felicia, Speaks and Cage Ranch areas of South Texas.
This acquisition includes producing properties with net production of about 103 million cubic feet per day equivalent of natural gas and oil from about 1,327 producing wells. The production consists of about 50 Mmcfed from 1,062 wells in the Mid-Continent area, and 53 Mmcfed from about 265 wells in South Texas.
Average acquired working interests and net revenue interests are 75 percent and 59 percent in the Mid-Continent, and 63 percent and 49 percent in South Texas, respectively.
Proved reserves currently identified total more than 400 billion cubic feet equivalent and are 72 percent proved developed and 87 percent natural gas. EXCO has identified approximately 200 proved undeveloped drilling opportunities in the package, with 88 percent of the opportunities located in the Mid-Continent.
The Mid-Continent assets contain approximately 76 percent of the total proved reserves in the transaction.
The transaction is expected to close in April 2007, subject to customary conditions to closing and governmental clearance. The effective date of the sale is January 1, 2007.