Monday, February 18, 2013

EXCO Enters JV for Shallow North LA Properties

EXCO Resources announced on Friday that the company had entered into a joint venture with the Harbinger Group to operate EXCO's shallow properties (Cotton Valley and above) in the Danville, Waskom, Holly and Vernon fields in north Louisiana.  Additional EXCO properties in west Texas were included in the deal as well.  You can read the link above for details, but to summarize, EXCO received cash upfront and will remain the operator of the properties but will have only a minority limited partner ownership in the properties.

Harbinger Group is a diversified holding company headed by Philip Falcone that owns an array of consumer brands (Black & Decker, George Forman, Miracle Ear, etc.) and has interests in life insurance and annuity companies.  This seems like an odd combination, but Harbinger is the former Zapata Corporation, which was the oil company founded by former president George H.W. Bush.  Harbinger seems to have little energy expertise now, but it will not be the operator.  Falcone has been in the news lately in his failing efforts to save another company, LightSquared, from bankruptcy.

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