By the OGJ Online Staff
HOUSTON, Feb. 28-EXCO Resources Inc., Dallas, Tex., has agreed to acquire Addison Energy Inc., Calgary, in an all-cash transaction worth $51.5 million.
A pre-acquisition agreement provides for Addison's management to retain 5% of the company.
Both boards have approved the transaction, and shareholders owning 79.7% of Addison have entered lock-up agreements with EXCO.
Doug Miller, EXCO's CEO, said that the acquisition of Addison would likely close in mid to late April.
Miller said, "For years, we have looked for the right transaction to enter Canada, but had not found the proper combination of good management, quality properties, and a transaction of sufficient size to justify the entry. The properties to be acquired are principally located in Alberta and have significant upside potential."
EXCO estimates Addison's net proved oil and natural gas liquids reserves at 2 million bbl and proved gas reserves at 36.8 bcf. Net production in December 2000 was 840 b/d of liquids and 12,000 Mcf/d of gas.
EXCO's principal operations are in Texas, Louisiana, and Mississippi.