Exco Resources plans to sell off its oil and gas properties in the Eagle Ford Shale for $300 million as it ramps up drilling elsewhere.
That’s less than half the $685 million the Dallas oil producer paid for the assets in Zavala, Frio and Dimmit counties in South Texas four years ago, when oil prices were near $100 a barrel.
The company said it will use proceeds from the transaction, expected to close in June, to boost drilling in the Haynseville and Bossier Shale in East Texas and western Louisiana.
It’s selling the Eagle Ford assets to Venado Oil & Gas, a private equity-backed company based in Austin. Those properties produced some 4,100 barrels of oil equivalent a day in December.