Exco Resources Inc. agreed to acquire producing and undeveloped oil and gas assets in the Eagle Ford and Haynesville shale formations for a total of $1 billion from Chesapeake Energy Corp.
Through the acquisitions, Exco is establishing its position in the South Texas Eagle Ford and expanding its holdings in the Louisiana Haynesville.
The effective dates of the Eagle Ford and Haynesville acquisitions are Apr. 1 and Jan. 1, respectively. Exco anticipates closing the transactions in July with the Haynesville acquisition closing first.
In the Eagle Ford, Exco of Dallas agreed to buy leases and assets covering 55,000 net acres for $680 million. Assets include 120 producing wells. The average net production was 6,100 boe/d in May.
Chesapeake said Exco was acquiring assets in the Texas counties of Zavala, Dimmit, La Salle, and Frio counties.
In the Louisiana Haynesville, Exco agreed to buy leases and assets covering 5,600 net acres for $320 million. Chesapeake said the Haynesville transactions involve Chesapeake’s operated and nonoperated interests in Louisiana’s Desoto and Caddo parishes.
The average net production was 114 MMcfd of natural gas equivalent in May.
Chesapeake said the Exco transactions bring Chesapeake’s year-to-date asset sales signed or closed to $3.6 billion, which, combined with forecasted net operating cash flow, enables Chesapeake to fully fund its 2013 capital expenditure budget.