BG Sells Cotton Valley Gas Assets to EXCO, USA

BG Group said that it has signed a sale and purchase agreement with EXCO Resources for the divestment of all its interests in the shallow, non-core, conventional producing assets and acreage in the Cotton Valley formation for a consideration of $132.5 million.

These assets, covering approximately 54 165 net leasehold acres across East Texas and North Louisiana, are not required to be held by BG Group in order to hold, drill and produce the undeveloped Haynesville/Bossier formation shale reserves which lie beneath the Cotton Valley formation.

Closing of this transaction is expected in the first quarter of 2013.

[mappress]
LNG World News Staff, February 15, 2013; Image: EXCO