Monday, November 5, 2012

EXCO Unloads Conventional Properties to JV

EXCO Resources announced this morning that it had created a joint venture with Harbinger Group, Inc. that contains EXCO's north Louisiana and east Texas shallow properties and its Canyon Sand and other west Texas assets.  The transaction includes Cotton Valley assets in the Holly, Waskom, Danville and Vernon fields.  There are no Haynesville assets in the transaction.

EXCO ended up with $597.5 million, of which $372.5 million will be received up front and used to pay down debt.  EXCO will own 25.5% of the new JV.  The NLA/ETX properties are actively producing right now but they are not prospective for more drilling until natural gas prices improve.

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