Exco Resources has acquired Marcellus Shale properties from Chief Oil & Gas and related parties for approximately $459.4m.
The parties agreed to close the transaction into an escrow account pending receipt of a waiver from a third party, which is expected to be obtained by 14 January 2011.
Assuming BG Group elects to participate, the development of these assets will be governed by the joint venture.
The assets include producing properties with current gross production of approximately 40mmcf per day from 15 producing wells, 11 wells currently awaiting completion and over 50,000 net acres prospective for the Marcellus Shale located primarily in Lycoming and Sullivan Counties in Pennsylvania.
Exco is an oil and natural gas exploration, development and production company headquartered in Dallas, Texas, with principal operations in East Texas, North Louisiana, Appalachia and West Texas.