The partnership holds conventional oil and natural gas assets previously owned by Exco in West Texas, including and above the Canyon Sand formation, as well as in the Danville, Waskom, Holly and Vernon fields in East Texas and North Louisiana, including and above the Cotton Valley formation.
Last week EnCana Corp. announced a joint venture with a subsidiary of PetroChina to explore and develop its Duvernay land holdings in west-central Alberta.
The partnership will use private equity funds managed by Blackstone to develop LLOG's four recent deepwater discoveries as well as the exploration and appraisal of its prospect inventory.
In exchange for about 198,157 gross acres (123,706 net), Exco will receive $597.5 million and a 24.5% limited partner interest in the partnership and a 50% interest in the general partner of the joint venture.
Upon closing, Spectra Energy, Phillips 66, and DCP Midstream each will own a one-third interest in the two pipelines – and will equally fund the remaining capital expenditures through completion of the pipelines.
Sovereign will have up to a 75% working interest in Underground’s interest in 2,857 gross acres in the northwest corner of the Zaca Field extension project.
Under the terms of the joint venture, the two Indian oil companies have together acquired an undivided 30% non-operated interest in substantially all of Carrizo’s assets and operations prospective for the Niobrara Formation.