Cotton Valley, Hosston, Travis Peak, PettetOur conventional Cotton Valley, Hosston, Travis Peak and Pettet assets were contributed to the partnership with HGI on February 14, 2013. The Vernon Field in Jackson Parish, Louisiana is the most significant producing field in this group of assets as its production averaged approximately 48 Mmcf per day of net natural gas volumes from the lower Cotton Valley and Bossier Sand formations at depths ranging from 12,000 to 15,000 feet for the month of December 2012. With current low commodity prices, the primary focus in the Vernon Field is to minimize our operating expense while maintaining production. We have successfully mitigated the production decline rate in the field over the last two years. We have additional acreage and production in Caddo and DeSoto Parishes, Louisiana, primarily in four fields-Holly, Kingston, Caspiana and Longwood. We also have acreage and production in Harrison, Panola, and Gregg Counties in Texas, primarily across three fields-Carthage, Waskom, and Danville. Production from these areas is primarily from Cotton Valley sands at depths ranging from 10,400 to 11,000 feet and the Travis Peak and Hosston Sands at 7,800 to 10,000 feet. Due to low commodity prices, we are not actively drilling in these formations. Capital spending will be focused on maintaining a strong emphasis on base production performance. We typically run multiple service rigs replacing tubing, changing pumps, cleaning out fill and implementing general repairs to maintain optimum production levels. The partnership with HGI currently has 915 wells flowing to sales with a total gross operated production rate of approximately 124.1 Mmcfe per day (67.0 Mmcfe per day net). During the first quarter 2013, the partnership expects to close on the acquisition from BG Group of their shallow interests in the East Texas/North Louisiana JV area.
EXCO Resources, Inc. Reports Fourth Quarter And Full Year 2012 Results
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