EXCO Resources divests South Texas oil, gas properties for $300 million


DALLAS -- EXCO Resources, Inc. has announced 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 Jan. 1, 2017. The properties to be divested include EXCO'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 boed (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 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.

Related News ///


Comments ///

comments powered by Disqus