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Venado Oil and Gas buys EXCO natural gas properties in Texas for $300m

Staff Writer |
EXCO announces the execution of a definitive agreement with a subsidiary of Venado Oil and Gas, an affiliate of KKR, to divest its oil and natural gas properties in South Texas.

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The purchase price of $300 million is subject to customary closing conditions and adjustments based on an effective date of January 1, 2017.

The properties to be divested include the company's interests in oil and natural gas properties and surface acreage in Zavala, Frio and Dimmit counties in Texas

These properties produced approximately 4,100 BOE per day (~90% oil) during December 2016. The company expects the transaction to close in June 2017.

EXCO's planned divestiture of the South Texas oil and natural gas properties represents an important step in its portfolio optimization initiative and will improve its financial flexibility.

The company intends to use the proceeds to fund drilling and development of its core Haynesville and Bossier shale assets in North Louisiana and East Texas and for other general corporate purposes.

After the closing of the sale, the borrowing base under the company's revolving credit agreement will be $100 million. The next borrowing base redetermination under the Credit Agreement is set to occur in November 2017.

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