EXCO Resources Closes Sale of Louisiana Properties for $19.5 Million

EXCO Resources, Inc. announced the closure of a previously disclosed sale of its interest in certain properties located in Louisiana, resulting in a substantial cash influx. The sale, valued at $18.7 million with an additional $800,000 in property, is expected to generate a pre-tax gain of approximately $5.1 million in the fourth quarter of 1999. The deal also includes the payment of $7 million in principal and $619,000 in accrued interest owed to EXCO by the joint venture partner, Venus Exploration, Inc.

Key Takeaways:

• EXCO Resources, Inc. closed the sale of its Louisiana properties for $18.7 million cash and $800,000 in property.
• The company expects to book a pre-tax gain of approximately $5.1 million in the fourth quarter of 1999.
• The sale involves the dissolution of a joint venture between EXCO and Venus Exploration, Inc.
• Venus paid EXCO $7 million in principal and $619,000 in accrued interest.
• The joint venture's credit facility was paid in full as a result of the sale.
• EXCO Resources, Inc. is an oil and gas acquisition, exploration, and production company based in Dallas, Texas.
• The company's stock is traded on the Nasdaq NMS under the symbol EXCO.

Statistics:

• $18.7 million: The value of the cash received from the sale of Louisiana properties.
• $800,000: The value of the property received as part of the sale.
• $5.1 million: The estimated pre-tax gain EXCO expects to book in the fourth quarter of 1999.
• $7 million: The principal amount paid by Venus Exploration, Inc. to EXCO as part of the sale.
• $619,000: The accrued interest paid to EXCO by Venus Exploration, Inc.

Sources:

• A press release from EXCO Resources, Inc. dated January 10.
• The Securities and Exchange Commission filings of EXCO Resources, Inc.
• The Nasdaq NMS under the symbol EXCO.