Acquired producing and undeveloped oil and gas assets in the Eagle Ford.
EXCO Resources Inc. (NYSE: XCO) closed the acquisition of producing and undeveloped oil and gas assets in the Eagle Ford from subsidiaries of Chesapeake Energy Corp. (NYSE: CHK) for US $685 million in cash.
EXCO financed the Eagle Ford acquisition under the company’s recently amended and restated credit agreement which has an initial $1.6 billion borrowing base. The initial borrowing base includes a $1.3 billion revolving facility and a $300 million term loan. The term loan portion of the facility is expected to be replaced with a new term loan containing terms and conditions customary for a transaction of this nature. The credit agreement provides that the initial borrowing base will be reduced by $400 million through the sale of certain selected assets during the next twelve months. The acquisition had an effective date of April 1.
EXCO Resources Inc. is an independent energy company engaged in the acquisition, exploration, exploitation, development and production of onshore U.S. oil and natural gas properties with a focus on shale resource plays. The company is based in Dallas.