Exco Resources Inc., Dallas, (NYSE: XCO) has acquired producing properties and other assets in multiple fields in the Midcontinent, South Texas, Texas and Louisiana Gulf Coast and Oklahoma from Anadarko Petroleum Corp., The Woodlands, Texas, (NYSE: APC) for $860 million in cash ($749 million after closing adjustments).
Exco then sold the South Texas and Gulf Coast properties to Crimson Exploration Co., Houston, (OTCBB: CXPO) for $285 million in cash ($245 million after closing adjustments) and $4.6 million in Crimson shares in a total deal valued at $289.6 million.
The South Texas and Gulf Coast assets sold to Crimson include approximately 250 wells in more than 30 fields on more than 80,000 gross acres in Liberty and Lavaca counties on the upper Texas Gulf Coast, Brooks County in South Texas and Calcasieu Parish in southern Louisiana (85% operated). Net production is 50 million cu. ft. equivalent per day. Proved reserves are 96 billion equivalent (90% gas, 59 billion equivalent proved developed producing) and unrisked probable and possible reserves are 140 billion equivalent.
The Midcontinent properties Exco is keeping include approximately 1,062 producing wells on approximately 200,000 net acres in the Golden Trend, Watonga-Chickasha, Mocane-Laverne and Reydon areas in Oklahoma (91% operated). Net production is approximately 51 million equivalent per day. Proved reserves are 337 billion equivalent (67% proved developed) and probable and possible reserves are 21 billion equivalent.
Exco funded the deal, net of the $245 million from the Crimson sale, with $176 million in cash and $328 million from its revolving credit facility.
Lehman Brothers was financial advisor to Anadarko and Tristone Capital marketed the assets.
Crimson president and chief executive Allan D. Keel says, "We are extremely excited about this transforming acquisition and the benefits that it presents to the company. The critical mass, strong cash flow and upside potential that come with this package of assets, and the financing we put in place to complete this acquisition will provide us the financial strength and flexibility to pursue additional growth through further acquisitions as well as complement that effort with drilling of lower-risk exploitation and exploration projects in our growing inventory of prospects."
Crimson funded the deal with proceeds from an amended and restated $400 million revolving credit facility.
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