Chesapeake has agreed to sell approximately 55,000 net acres in Dimmit, Frio, La Salle, and Zavala counties to EXCO Resources for $680 million. The deal adds a new operating area for EXCO. The company currently operates rigs in West Texas, East Texas & North Louisiana, and the Marcellus Shale region.
The sale is part of Chesapeake's plans to raise $4-7 billion through assets sales in 2013.
The Eagle Ford acreage includes:
- 120 producing wells (94 Eagle Ford wells)
- 6,100 boe/d of production in May
- 300 potential drilling locations
Douglas H. Miller, EXCO’s CEO, stated “The Eagle Ford acquisition establishes our position in the high value oil core area of the Eagle Ford shale, and delivers immediate production and reserve additions, significant resource potential, and solid economic returns.
Undeveloped locations in the Eagle Ford will be developed through a partnership between EXCO and KKR. KKR will fund approximately $133 million or 50% of the development costs and EXCO will operate the wells.