EXCO Resources (XCO) announced the purchase of acreage in Pennsylvania that is prospective for the Marcellus Shale formation. The company will acquire the properties from Chief Oil and Gas LLC for approximately $459.4 million.
EXCO Resources said that the acreage is located in the Area of Mutual Interest established with BG Group in the Marcellus Shale, and that BG Group has the right to participate up to 50% in the deal.
EXCO Resources said that the acreage is located mostly in Lycoming and Sullivan Counties in Pennsylvania, and consists of more than 50,000 prospective acres with exposure to the Marcellus Shale. The properties have current gross production of 40 million cubic feet per day from fifteen wells, with another eleven wells currently waiting on completion.