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Exco Acquire Marcellus property from Chief Oil and Gas LLC
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Oil and Gas Company Exco Resources Inc has purchased certain oil and gas assets in the Marcellus shale from Chief Oil & Gas LLC for about $459.4 million.
The properties are producing about 40 millions of cubic feet per day from 15 wells. The land also includes 11 wells that are not yet completed and 50,000 prospective acres, mostly in Northeastern Pennsylvania.
The deal, financed from debt, is expected to close next month.
The properties are located on land owned by a joint venture with BG Group PLC, which has the right to purchase half of the properties included in the acquisition.
If BG Group choses to buy, the properties will be developed by the joint venture.
Oil and gas company EXCO Resources Inc the target of a buyout by its CEO, said it also acquired some Marcellus shale properties for $459.4 million from Chief Oil & Gas LLC and related parties. The assets fall within the area of mutual interest established by existing joint venture with British gas producer BG Group (BG.L) and thus, BG has the right to purchase 50 percent of the properties. [ID:nLDE6490DB]
The acquired assets include producing properties with gross output of about 40 million cubic feet per day from 15 producing wells prospects located in Northeastern Pennsylvania, the company said. Last month, EXCO’s CEO Douglas Miller teamed up with investors including oilman T. Boone Pickens to bid for the company for about $4.36 billion.