EXCO Halts Drilling In Eagle Ford Shale, Cites Low Oil Prices
HOUSTON, Oct 27 (Reuters) - EXCO Resources Inc, a struggling U.S. natural gas producer, said on Tuesday it has suspended oil exploration in the Eagle Ford shale of South Texas because of low crude prices.
Though many producers have pulled back in the No. 2 U.S. shale patch, EXCO now becomes one of only a few publicly traded companies to halt work there altogether since prices turned lower. Others were Comstock Resources Inc and Clayton Williams Energy Inc.
EXCO, which is in the middle of a strategic restructuring led by turnaround expert and former TXU Corp Chief Executive John Wilder, said it plans to redeploy capital from south Texas into higher-return wells like those it is drilling in east Texas.
"As a result of continued depressed oil prices, EXCO has suspended its development program in the South Texas region for the remainder of 2015," EXCO said in a statement on its third-quarter results.
In the third quarter, Dallas-based EXCO said it drilled four wells in the Eagle Ford shale. Total production from the region was 7,300 barrels oil equivalent per day.
EXCO, which also said it will ask shareholders to vote on a proposed 1-for-10 reverse stock split, reported a third-quarter loss of $355 million, or $1.30 per share, compared with a profit of $42 million, or 15 cents per share in the year-ago period.
Shares of EXCO, which are down 47 percent so far this year, closed up 11 cents at $1.16 per share on the New York Stock Exchange.
(Reporting by Anna Driver; Editing by Terry Wade and David Gregorio)
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