Marcellus Shale

EXCO Resources To Increase Marcellus Shale Drilling In 2012

EXCO Resources (XCO) has budgeted $585 million in 2012 to conduct drilling and completion operations across the company’s oil and gas properties.  The company plans to spend $93 million of these funds in the Marcellus Shale for drilling and completion activities.  This is an increase over 2011 spending levels.

EXCO Resources will spend an additional $13 million to acquire more leases and $22 million for other projects and seismic acquisition.

EXCO Resources plans to drill 55 gross or 13.2 net Marcellus Shale wells in 2012, and 16 gross or 6 net appraisal wells. The company will operate an average of five rigs in the Marcellus Shale in 2012, up from four rigs in 2011.

EXCO Resources Purchases Marcellus Shale Acreage

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.

EXCO Resources Releases 2011 Marcellus Shale Capital Budget

EXCO Resources (XCO) released preliminary information on its proposed capital budget for exploration and development activities for 2011.  The company plans to spend $976.2 million in 2011 on various activities, including $37.8 million in the Marcellus Shale.

EXCO Resources plans to use the funds to drill and complete 52 gross, or 16.7 net horizontal wells into the Marcellus Shale formation.  The company will also drill 12 gross, or 6 net appraisal wells into the Marcellus Shale to test the formation on other parts of its extensive acreage holdings.