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EXCO Resources – 2010 was a very good year…


2010 was a busy year for EXCO Resources, Inc. (XCO). In April of 2010, they partnered with BG Group to acquire Common Resources Haynesville/Bossier assets, including more than 39 MMCf/d of gross production and 29.2K net acres, all acreage in the Shelby Trough, a Haynesville sweet spot.

Two months later, EXCO announced it would be acquiring Southwestern Energy’s Haynesville/Bossier assets, which were also situated in the Shelby Trough area. In their 4th quarter operating results report, they announced their fourth-quarter oil and gas production increased 70% from a year earlier thanks to drilling in the Haynesville shale region and acquisitions. The natural-gas producer said production reached 350 million cubic feet equivalent per day and predicted that 2011 production would average between 520 and 580 Mmcfe per day. 59% of the company’s total production is a direct result of their Haynesville shale drilling program, which was up from 23% just one year earlier (Tess Stynes, Dow Jones Newswires).

According to this report, EXCO is using 80-acre spacing in a manufacturing mode while utilizing multi-pad development in the De Soto Parish core area. In 2010 they completed their first four well, 80-acre spacing test across 320 acres, and their first eight well, 80-acre spacing test across a full 640 acre unit. At year end 2010, they had 12 units in progress for full 80-acre development. In late 2010 they commissioned a water distribution line utilizing waste water from a local paper mill to support their frac fleets, which they successfully used to simultaneously feed three frac fleets.

By year end 2010 EXCO had six drilling rigs running in the area and a total of 19 horizontal wells flowing to sales with a total gross production rate of approximately 100 Mmcf per day (34 Mmcf per day net).  Fourth quarter highlights included completing and turning to sales two wells with initial rates of 23 and 28 Mmcf per day with flowing pressures of 8,979 and 9,520 psi, respectively. They also achieved their best drilling time performance to date with an impressive 28 days from spud to rig release.

Exco has also recently completed 168 square miles of 3-D seismic in DeSoto Parish and acquired another 126 square miles in the Shelby Trough area. In 2010, they used micro-seismic to monitor five wells and another 19 wells with our buried array monitoring system. They also drilled a dedicated vertical pressure monitoring well and installed permanent down hole gauges to measure and monitor the reservoir pressure in the Haynesville shale.

As of January 13 2011, the LDNR (Louisiana Department of Natural Resources) reported 86 active-producing wells for EXCO Resources, 22 drilling in progress, 30 in testing phase, and 47 with initial permitting reports, 5 wells being recompleted and 3 waiting on rigs. Analysis of the completion data for these wells produced some interesting statistics. Their average completion choke size for these wells is 20/64, ranging from 6/64 to 26/64. The average perf interval for these wells has increased steadily, but averages around 4000 feet. Average TD was around 16,000 in the fourth quarter of 2010. The average Prac IP in the fourth quarter was ~9000 mcf/d.

Chart of Exco’s position relative to other Haynesville operators, based on average daily production (includes both Texas and Louisiana)

Chart of Exco’s position relative to other Haynesville operators, based on average daily production (includes both Texas and Louisiana)


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Matt Menchaca

Matthew Menchaca is a Research Analyst at Drillinginfo. He is a key member of the Data Management Department and the DI Analytics group. He performs industry research, tracks play development and provides various types of analysis on unconventional resource plays in the U.S. Matthew graduated from the University of Texas at Austin in 2010 after studying Geography and Geological Sciences.