BG Group has completed the upstream and midstream acquisitions as part of the pr ...

BG Group has completed the upstream and midstream acquisitions as part of the previously announced alliance with EXCO Resources. The consideration for the upstream portion of the alliance is $1,127mn, which consists of $727mn plus $400mn to be paid as a carry of 75% of EXCO’s future costs to develop the Haynesville shale gas. The consideration paid for the midstream portion of the alliance is $269.2mn. Under the terms of the alliance, BG Group has acquired a 50% interest in 120,000 net acres in EXCO’s upstream leases in a defined area of East Texas and North Louisiana, which encompasses the Haynesville shale, the prospective Bossier shale and the Cotton Valley tight gas sands formations; added 2.6tn cf to BG Group’s net potential resources, with current net production of 90mn cf/d, anticipated to increase to some 250mn cf/d in 2012, net to BG Group; acquired a 50% interest in a newly formed company that will hold related and complementary EXCO gas-gathering and transportation assets and entered into agreements to support the joint development and growth of these assets; and entered into a joint development agreement with EXCO to cooperate in the development and production of onshore shale and tight gas resources across 14 counties and parishes in East Texas and North Louisiana.