By OGJ editors
HOUSTON, Dec. 22 – EXCO Resources Inc. will acquire Marcellus shale interests from Chief Oil & Gas LLC and related parties for $459.4 million, subject to price adjustments at closing. Both companies are based in Dallas.
The deal includes properties with gross production of 40 MMcfd of gas (16 MMcfd net) from 15 wells, 11 wells awaiting completion, and more than 50,000 net acres in northeastern Pennsylvania, primarily Lycoming and Sullivan counties.
BG Group, a partner of EXCO in an Appalachian basin joint venture, has the right to buy 50% of the acquisition.
Big Chief recently said that its Marcellus basin production had reached 100 MMcfd of gas equivalent from 42 wells and that it expected output to reach 115 MMcfd by yearend (OGJ Online, Nov. 10, 2010).