EXCO to Sell DJ Basin Acreage for $132.5M
Petroleum Development Corporation and EXCO Resources, Inc. said Tuesday that they have entered into a definitive Purchase and Sale Agreement regarding a purchase of EXCO's producing properties and remaining undeveloped drilling locations in the Wattenberg Field area of the DJ Basin, Colorado. The sale contemplates the purchase of substantially all of EXCO's assets in the area. The purchase price is $132.5 million. The anticipated closing date for the transaction is January 4, 2007, with an effective date of October 1, 2006. The Purchase and Sale Agreement contains provisions and terms customary for a transaction of this type and size, including conditions affecting the ultimate purchase price, adjustment to schedule of assets purchased and options under which either party may terminate the offer. The majority of the purchase price of this transaction qualifies for the tax-deferred status of a Section 1031 exchange.
Subsequent to the closing of the transaction PDC will provide further information regarding the assets acquired, the impact to the Company and other additional information regarding daily production rates, reserve additions and future drilling plans. PDC intends to provide this additional information on January 23, 2007. The specific details regarding the timing and form of the release will be provided at a later date.
Petroleum Development Corporation is an independent energy company engaged in the development, production and marketing of natural gas and oil. The Company operations are focused in the Rocky Mountains with additional operations in the Appalachian Basin and Michigan.
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Company: EXCO Resources, Inc. more info
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