Exco’s average working interest in the properties is approximately 94% with an average net revenue interest of 72%. Exco’s estimate of net proved reserves acquired is 109 billion cubic feet equivalent (bcfe) and estimated total net reserves (proved, probable and possible) exceed 370bcfe exclusive of Bossier/Haynesville shale potential.
According to the company, the assets include producing properties with more than 15 million cubic feet equivalent per day of net production from 83 producing wells and approximately 11,000 gross acres. Also included in the assets is a 50 mile gathering system with compressors, a dehydration unit and a refrigeration plant.
Exco estimates that there are more than 500 additional drilling locations in the Cotton Valley and Travis Peak formations, of which 92 are proved. Exco plans to drill at least one vertical well in 2008 to further delineate potential of the Bossier/Haynesville, and Exco estimates that there could be more than 100 potential shale locations across the acquired acreage.
