EXCO plans $976M budget for 2011

EXCO Resources (NYSE: XCO) plans to spend $768.9 million on drilling and completions in 2011 as part of a $976.2 million total budget. 

The plan contemplates 22 operated drilling rigs running in the Haynesville Shale play, split between north Louisiana (15 rigs) and the Shelby Trough area (7 rigs) in east Texas, 4 rigs drilling in the company’s Appalachian JV with BG Group, and 2 rigs drilling in the Permian. 

East Texas/North Louisiana JV
The company plans to spend $757 million net to EXCO within its East Texas/North Louisiana JV with BG Group, of which $683.0 million will be spent for drilling and completion costs, $29.8 million for lease acquisitions, $41.8 million for operations projects, and $2.4 million for seismic data acquisition.

The Haynesville drilling program is expected to satisfy the company’s lease obligations during 2011. No detailed production guidance is given but the company cites a 40% production growth target. 

Permian Division

Roughly $53.4 million will be spent in the Permian Division. Within this budget, $48 million will be spent to drill and complete 72 gross (69.8 net) operated wells. The target zones include Clearfork, Wolfcamp, Canyon and Fusselman formations. The company's net oil production in the region has grown by more than 30% during 2010. 

Appalachia JV
The capital budget program net to EXCO for the Appalachia JV with BG Group totals $82.7 million, of which $37.8 million will be spent to drill and complete 52 gross (16.7 net) operated horizontal Marcellus shale wells and drill 12 gross (6.0 net) horizontal Marcellus shale appraisal wells. Other spending includes $25 million for lease acquisitions, $13.5 million for operations projects, and $6.4 million for seismic data acquisition.

Source:  EXCO Resources, Global Hunter Securities

Related Articles

Oryx enters Permian with $300M equity commitment

04/09/2014 Oryx Midstream Services LLC has received an equity commitment totaling up to $300 million, and will pursue midstream opportunities in the Permian Basin, focusing initially on the Delaware Basin in ...

Outrigger Energy further expands Permian footprint

04/09/2014 Outrigger Energy LLC is expanding its midstream capabilities in the Permian Basin with the addition of a natural gas gathering and processing and crude oil gathering system in the Midland Basin of ...

Energen sells natural gas utility to become a pure play in the E&P space

04/07/2014

Energen Corp. has signed a definitive stock purchase agreement to sell its natural gas utility business, Alabama Gas Corp. (Alagasco), to The Laclede Group Inc.

Welch appointed EVP, CFO of JP Energy Partners

04/03/2014

JP Energy Partners LP has appointed Patrick Welch as the company’s executive vice president and CFO. Welch has been serving as the interim CFO for the company since November of last year.

Rosetta Resources increases borrowing base to $950 million

04/03/2014 Rosetta Resources Inc. reports the amendment of its senior revolving credit facility to increase its borrowing base. Effective April 2, the company's borrowing base increased from $800 million to $...

More Oil & Gas Financial Articles

Oryx enters Permian with $300M equity commitment

Wed, Apr 9, 2014

Oryx Midstream Services LLC has received an equity commitment totaling up to $300 million, and will pursue midstream opportunities in the Permian Basin, focusing initially on the Delaware Basin in Texas and New Mexico.

Outrigger Energy further expands Permian footprint

Wed, Apr 9, 2014

Outrigger Energy LLC is expanding its midstream capabilities in the Permian Basin with the addition of a natural gas gathering and processing and crude oil gathering system in the Midland Basin of West Texas.

Energen sells natural gas utility to become a pure play in the E&P space

Mon, Apr 7, 2014

Energen Corp. has signed a definitive stock purchase agreement to sell its natural gas utility business, Alabama Gas Corp. (Alagasco), to The Laclede Group Inc.

Welch appointed EVP, CFO of JP Energy Partners

Thu, Apr 3, 2014

JP Energy Partners LP has appointed Patrick Welch as the company’s executive vice president and CFO. Welch has been serving as the interim CFO for the company since November of last year.

Rosetta Resources increases borrowing base to $950 million

Thu, Apr 3, 2014

Rosetta Resources Inc. reports the amendment of its senior revolving credit facility to increase its borrowing base. Effective April 2, the company's borrowing base increased from $800 million to $950 million.

Most Popular

Oil & Gas Jobs

Search More Job Listings >>
Subscribe to OGFJ