Exco Resources, headquartered in Dallas, announced it would be selling its oil and gas properties in South Texas’ Eagle Ford Shale to Venado Oil & Gas. The sale price is less than half of what Exco paid for the assets in Zavala, Frio and Dimmit Counties in South Texas in 2013. At that time, oil prices were near $100 a barrel. The transaction is expected to close in June 2017.
Exco said it will use the $300 million from the sale to finance drilling and development of its Haynesville and Bossier shale assets. Exco has approximately 96,300 net acres in East Texas and North Louisiana.
Venado has been busy in Eagle Ford, having recently acquired 37,500 net acres in the shale’s Maverick Basin from S.M. Energy Co. for $800 million.