EXCO Resources (XCO) announced a 2012 capital budget totaling $710 million, with $585 million allocated to development and completion activities across the company’s portfolio. The company’s budget reflects a decrease in spending in the Haynesville Shale relative to 2011.
EXCO Resources plans to spend $453 million to develop the Haynesville Shale in 2012, along with an additional $16 million in lease acquisitions and other operations. The company will operate 13 rigs in 2012 in the Haynesville Shale.
EXCO Resources said that the reduction in cash flow was done in order to “manage our cash flow in the current natural gas price environment.” The company expects to complete all of its lease obligations during 2012 and convert all its acreage to held by production.
- Operated well count - Drill and complete 98 gross or 30.2 net wells.
- Non operated well count – 22 gross or 0.6 net wells.
- Completion of 22 gross or 7.7 net wells drilled in 2011.
- Holly Area – in DeSoto and Caddo Parish, Louisiana - 8 rigs
- Shelby Trough – Nacogdoches, San Augustine and Shelby Counties, Texas - 5 rigs
In the Shelby Trough area, EXCO Resources will focus drilling in areas where previous wells produced in excess of 30 million cubic feet of natural gas per day during initial periods.