Gulf Oil and Gas accountACCOUNT

BG Group Elects Not to Participate in Haynesville Assets

Source: www.gulfoilandgas.com 9/10/2013, Location: North America

Share |
EXCO Resources, Inc. announced BG Group plc (“BG Group”) has elected not to acquire 50% of the recently acquired producing and undeveloped oil and gas assets in the Haynesville shale formation (“Haynesville”). EXCO closed the acquisition of the Haynesville assets on July 12, 2013 for a purchase price of $288 million, after customary preliminary purchase price adjustments.

These assets were subject to BG Group's right to acquire a 50% interest, which was formally offered to BG Group on July 13, 2013. As a result of BG Group’s election and continued strong operating performance, EXCO has raised its full year 2013 adjusted EBITDA guidance from approximately $435 million to approximately $450 million. EXCO’s full year 2013 guidance was initially $296 million, which was raised to $341 million with the March quarter earnings release, and subsequently increased to $435 million with the June quarter in connection with the recently announced Eagle Ford and Haynesville acquisitions.

Douglas H. Miller, EXCO’s Chairman and Chief Executive Officer, stated “With BG Group’s decision not to participate, EXCO will be able to fully benefit from the Haynesville assets’ strong base production and additional drilling inventory with upside development opportunities.” In connection with the Eagle Ford and Haynesville acquisitions, EXCO amended its credit agreement which includes a $400 million asset sale requirement. The asset sale requirement was reduced to $269 million as a result of the participation agreement with affiliates of Kohlberg Kravis Roberts & Co. L.P. If BG Group had elected to participate, the proceeds, net of the applicable borrowing base assigned to the properties, of approximately $60 million, would have been used to reduce the asset sale tranche. EXCO will continue to execute on planned sales of certain assets and has until July 2014 to eliminate the asset sale tranche.

For more information about related Opportunities and Key Players visit Shale Gas Projects

Shale Gas News in United States >>

United States >>  5/23/2017 - Freedom Oil and Gas Ltd (FDMQF) announced that it has commenced the drilling of the first well on its Dimmit County, Texas acreage targeting the Eagle...
Indonesia >>  5/21/2017 - Indonesia is offering 15 conventional and unconventional oil and gas blocks to potential bidders, government officials said on Friday, hoping more fle...

South Africa >>  5/16/2017 - South Africa's government may award its first shale gas exploration licences by the end of September, after environmental objections delayed the proce...
United States >>  5/5/2017 - A second BHP Billiton Ltd shareholder has made a public push for changes at the world's largest miner, with Sydney-based Tribeca Investment Partners p...

Argentina >>  4/27/2017 - Total has sanctioned the development of the first phase of the operated Aguada Pichana Este license in the giant Vaca Muerta shale play in Argentina. ...
United States >>  4/26/2017 - BHP Billiton has put its Fayetteville shale gas assets in the United States back on the block, the world's largest miner said, as it seeks to focus on...

Related Categories: Coalbed Methane  General  Heavy Oil  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

Related Articles: Coalbed Methane  General  Heavy Oil  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 


United States Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 | 23 | 24 | 25 | 26 | 27 | 28 | 29 | 30 | 31 | 32 | 33 | 34 | 35 | 36 | 37 | 38 | 39 | 40 | 41 | 42 | 43 | 44 | 45 | 46 | 47 | 48 | 49 | 50 | 51 | 52 | 53 | 54 | 55 | 56 | 57 | 58 | 59 | 60 | 61 |

Oil & Gas Projects in United States >>

More News

 

Oil & Gas Companies in United States >>


Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Privacy Policy.