EXCO and BG Group Join Forces in Marcellus

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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.

EXCO and BG Group Join Forces in Marcellus

To learn more visit the Marcellus A&D Folder in DI’s Unconventional Updates in DNA.

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Anne Leonard

In January 2015, Anne Leonard headed the team that launched the latest addition to DrillingInfo’s international publications, International Scout Frontier North America which covers the US Gulf of Mexico as well as Maritime and Arctic Canada. She has been reporting on exploration and production for more than 30 years. She began her career in Denver covering the Rocky Mountain Region, and has spent the last 10 years covering the international arena, with a particular focus on Latin America, Africa, Western Europe and the Far East. Anne received her Bachelor of Arts in Journalism from the University of Nebraska.