EXCO Resources Explores Possible Joint Venture Opportunities in Its East Texas/North Louisiana and Appalachia Operating Areas
2008-07-16 08:00:00
DALLAS–(EMWNews)–EXCO Resources, Inc. (NYSE: XCO) today announced that it has engaged
Goldman, Sachs & Co. to explore possible joint venture opportunities
with various interested parties to enhance exploitation and development
of its East Texas/North Louisiana and Appalachia operating areas.
EXCO’s reserves in East Texas/North Louisiana
include over 2.7 Tcfe of proved, probable and possible (3P) reserves, of
which 1.1 Tcfe is proved. EXCO’s East
Texas/North Louisiana interests also include 292,000 net acres, 255
Mmcfe/d of net production, and over 3,000 undrilled Cotton Valley,
Hosston and other conventional locations. EXCO’s
acreage includes over 115,000 net acres which are prospective for the
Bossier/Haynesville shale. Based on 80-acre spacing, this shale acreage
could contain over 1,400 drilling locations with substantial unbooked
reserve potential.
EXCO’s 3P reserves in Appalachia exceed 1.1
Tcfe of reserves of which 0.6 Tcfe is proved. EXCO’s
Appalachia region includes 1.1 million net acres, 60 Mmcfe/d of shallow
production, over 8,100 shallow drilling locations and nearly 400,000 net
acres of Marcellus shale potential of which 117,000 net acres are also
prospective for the Huron shale. Based on 80-acre spacing, the shale
acreage could contain 6,400 drilling locations with substantial unbooked
potential.
EXCO also has substantial midstream assets in East Texas/North Louisiana
which currently gather and transport in excess of 500 Mmcf/d of natural
gas.
The possible joint venture transactions could include a sale of up to
50% of EXCO’s reserves, production, acreage
and other interests in either or both areas, with a joint development
program to be conducted with the potential partner or partners. A
separate joint venture is contemplated for the East Texas/North
Louisiana midstream assets. EXCO anticipates using cash proceeds from
any such transaction to reduce debt, help fund the exploitation and
development of its shale potential and for other general corporate
purposes.
There is no assurance that this joint venture process will result in
EXCO changing its current business plan, pursuing a particular joint
venture or other transaction or completing any such transaction. EXCO
does not expect to update the market with any further information on the
joint venture process unless and until its Board of Directors has
approved a specific transaction or otherwise deems disclosure
appropriate.
EXCO Resources, Inc. is an oil and natural gas acquisition,
exploitation, development and production company headquartered in
Dallas, Texas with principal operations in Texas, Louisiana, Ohio,
Oklahoma, Pennsylvania and West Virginia.
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 http://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: proposals received from potential joint venture
partners, 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. 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,” or “unproved”
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
calculation of unproved drillsites and estimations 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, 2007 available on
our website at www.excoresources.com
under the Investor Relations tab or by calling us at 214-368-2084.
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EXCO Resources, Inc. F. Smith, 214-368-2084 |
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