Exco Resources NL (XCO)

EXCO Resources, a Texas corporation was incorporated in October 1955. It is an independent oil and natural gas company engaged in the exploration, exploitation, development and production of onshore North American oil and natural gas properties with a focus on shale resource plays. The Company's principal operations are conducted in key North American oil and natural gas areas including East Texas, North Louisiana, Appalachia and the Permian Basin in West Texas. In addition to its oil and natural gas producing operations, it own 50% interests in two midstream joint ventures located in East Texas/North Louisiana and Appalachia. As of December 31, 2011, its Proved Reserves were approximately 1.3 Tcfe, of which 97.1% were natural gas and 73.9% were Proved Developed Reserves. As of December 31, 2011, the related PV-10 of its Proved Reserves was approximately $1.7 billion, and the Standardized Measure of its Proved Reserves was $1.4 billion. For the year ended December 31, 2011, the company produced 182.7 Bcfe of oil and natural gas resulting in a Reserve Life of approximately 7.3 years. Its primary strategy is to appraise, develop and exploit its Haynesville, Bossier and Marcellus shale resources, primarily through horizontal drilling, and to leverage its complementary midstream gathering systems and treating facilities to promptly transport its production to multiple market outlets. On January 11, 2011, it closed the acquisition of undeveloped acreage and oil and natural gas properties primarily in the Marcellus shale from Chief Oil & Gas LLC for $454.4 million, or the Chief Transaction, after post-closing title adjustments and customary post-closing purchase price adjustments. BG Group participated in its 50% share for $227.2 million. Its development and exploitation project areas includes East Texas and North Louisiana, Haynesville shale, DeSoto Parish, Shelby Area, Cotton Valley, Hosston, Travis Peak, Pettet, Appalachia, Marcellus shale, Permian and Sugg Ranch Field. Its production operations are subject to a number of regulations at the federal, state and local levels. These regulations require, among other things, permits for the drilling of wells, drilling bonds and reports concerning operations.