Exco Resources Inc., Dallas, (NYSE: XCO) plans to acquire producing oil and gas properties, acreage and other assets in the Vernon and Ansley fields in Jackson Parish, La., from Anadarko Petroleum Corp. (NYSE: APC) for $1.6 billion in cash. Exco will finance the acquisition with a new revolving credit facility and a bridge loan from its banking group. Closing is expected in March. This acquisition consists primarily of proved developed producing gas properties with net production of approximately 190 million cubic feet equivalent (MMcfe) per day from approximately 350 producing wells (96% operated) on 66,000 net acres. Six drilling rigs and four workover rigs are active in the fields. The acquisition also includes gathering systems, compression and treating plants. The average acquired working interest is 91.1% with an average 70.2% net revenue interest. The properties produce from the Lower Cotton Valley formation. Proved reserves are estimated to aggregate approximately 466 billion cubic feet equivalent (Bcfe). About 446 Bcfe is proved developed producing and 20 Bcfe is proved undeveloped.
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