Haynesville Shale

EXCO Resources Updates Second Quarter Of 2010 Haynesville Shale Operations

EXCO Resources (XCO) has 80,000 net acres under lease in the Haynesville Shale and recently reported on its operations there during the second quarter of 2010. The company is involved in a joint venture with BG Group (BG), and is focused on developing acreage in De Soto and Caddo parish, and in the Shelby Trough in East Texas.

EXCO Resources operated eighteen rigs in the Haynesville Shale during the second quarter of 2010, and plans to increase this to twenty-two rigs by the end of 2010. The company plans to drill 140 operated wells in the Haynesville Shale in 2010.

EXCO Resources reported net production of 128 million cubic feet equivalent per day from the Haynesville Shale during the second quarter of 2010. This production increased to 160 million cubic feet equivalent per day by August 3, 2010.

EXCO Resources Increases Acreage In Haynesville Shale

EXCO Resources (XCO) held a conference call on February 24, 2010 in conjunction with its fourth quarter of 2009 earnings report, and discussed its operational activities in the Haynesville Shale. The company is involved with BG Group in a joint venture on part of its acreage in the Haynesville Shale.

“We did do a joint venture with BG during the year. It took us quite a while to figure it out. We had a lot of people, but I think we picked the absolute spectacular joint venture partner. They have been very cooperative through the process. They want to grow. We have bought another 25,000 acres in the Haynesville play with them, 12,500 acres net to us.”

“We bought acreage for $6,000 an acre right in the core. We paid $17.5 million. I would say on that 23,000, I looked at it the other day, its right around $12,000 average. It is going to be all over the ballpark.”

Source: Seeking Alpha

EXCO Resources - 2010 Haynesville Shale Capital Program

EXCO Resources, Inc. (XCO) released details of its 2010 capital program. The company will spend $471.4 million net in 2010 on various projects. EXCO Resources is currently operating 13 rigs and plans on increasing this to 17 in 2010.

EXCO Resources is moving forward on its development program in the Haynesville Shale. The company will spend 54% of its total capital budget or $255.2 million in capital to drill and complete 128 gross (37.9 net) wells on an operating and non-operating basis in 2010 in the Haynesville Shale.

The company is in a joint venture with BG Group in the Haynesville area, and will have a large part of the cost of its capital program carried by that company. EXCO Resources is targeting Haynesville Shale, Bossier Shale and Cotton Valley Group formations with the program.