EXCO Resources, Inc. recently announced that they signed an agreement with BG Group plc for a joint venture in the Marcellus Shale. In the agreement BG Group will pay $800MM in cash and a $150MM development commitment towards drilling in the Marcellus in which BG will fund 75% of EXCO’s drilling and completion costs in the play through 2011 or 2012. EXCO/BG assets now include 654,000 net leasehold acres, approximately 186,000 being prospective for the Marcellus, and roughly 265 Bcfe of proved reserves along with over 5,000 undrilled Marcellus locations. The companies will jointly own an operating company and a new midstream company that will contain equal representation from each party on the management boards.
The following is a map of EXCO’s drilling permits in the last year.
To learn more visit the Marcellus A&D Folder in DI’s Unconventional Updates in DNA.
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