Exco Resources Inc.

Transaction Type
Sellers
Marketers
Basin
Permian
Field
Pecos Slope (Abo)
Post Date
Close Date
Estimated Price
MM
Description

Exco Resources Inc. has retained Meagher Oil & Gas Properties Inc. to sell certain assets in the Permian Basin of New Mexico. The package includes 73% average working interest (60% net revenue interest) in a gas-development project in the Pecos Slope (Abo) Field in Chaves County. The assets include 23 operated wells and seven nonoperated. The targeted Abo sandstone formation is at 4,500 feet with drilling and completion costs of $525,000 per well. All leases are held by production. Production for January and February was 511,000 and 503,000 cubic feet per day, respectively. Net proved developed producing reserves are 2.2 million cubic feet, 130 million probable and 522 million possible, for a total resource potential of 2.9 billion cubic feet. Upside includes three probable and seven possible nonoperated locations, future downspacing to 80 acres, and deeper potential in the Pennsylvanian limestone and Ordovician dolostones. The bid closing date is April 24. The effective date is Jan. 1, 2009. The closing date is May 29. Contact Julia Foster, 303-721-6354, ext. 229.