EXCO Resources has reached an agreement with Sheridan Holding Company I, LLC to sell all of its producing assets in Oklahoma for $540 million, subject to customary purchase price adjustments.
As of December 31, 2008, the properties include estimated proved reserves of 4.8 million barrels of oil (Mmbbls) and 223.7 billion cubic feet (Bcf) of natural gas, or 252.5 billion cubic feet of natural gas equivalent (Bcfe), based on year-end SEC pricing. Current net production includes 919 barrels of oil per day and 39.1 million cubic feet per day of natural gas, or 44.6 million cubic feet of natural gas equivalent per day.
The sale is expected to close in November 2009, subject to customary closing conditions, and is effective as of October 1, 2009.
Douglas H. Miller, EXCO’s Chief Executive Officer commented, "This sale substantially completes our 2009 plan to divest certain non-strategic assets. We have now reached agreement on over $1.1 billion of such asset sales. Including our previously announced joint venture and after all closings of these asset sale transactions, we will have reduced debt by $2.0 billion. These transactions have strengthened our balance sheet and allowed us to focus more of our efforts and capital on our Haynesville and Marcellus shale plays."
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