OilVoice - EXCO Resources Closes Sale of Certain U.S. Producing Assets

EXCO Resources Closes Sale of Certain U.S. Producing Assets

Wednesday, November 25, 2009

EXCO Resources, Inc. has closed the previously announced sale of certain Ohio and Northwestern Pennsylvania producing assets to EV Energy Partners, L.P., along with certain institutional partnerships managed by EnerVest, Ltd. The sale was effective as of September 1, 2009. Total proceeds received at the closing were $131.2 million, subject to customary post-closing adjustments. In connection with the closing, the parties agreed to hold back approximately $13.1 million of the properties for up to 90 days pending the receipt of required consents from third parties necessary to transfer such properties. The proceeds from the sale were used to repay a portion of EXCO’s revolving credit facility.

Excluding those properties being held back, the properties sold include estimated proved reserves of 1.9 million barrels of oil and 73.1 billion cubic feet of natural gas, or 84.5 billion cubic feet of natural gas equivalent, based on SEC pricing as of September 30, 2009. Current net production is approximately 15 million cubic feet of natural gas equivalent per day for the properties sold at the closing.

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