November 2, 2011 / 7:24 PM / 6 years ago

EXCO Resources gets approach for shale deals

* Sees deals in the $50-$100 mln range

* Says has been approached for 10 deals

* Says ‘not afraid of oil’ despite the fall in prices

Nov 2 (Reuters) - Natural gas-focused explorer EXCO Resources Inc said it has been approached for at least 10 deals in the range of $50-$100 million each, as it looks to tap more liquids-rich plays.

“We are looking at four deals in the Bakken, three or four deals in Eagle Ford, three or four deals in West Texas,” a company executive said on a conference call with investors, adding there were ‘reasonably priced’ deals in the market.

Huge supplies have depressed U.S. natural gas prices NGc1, while a tight supply-and-demand scenario has underpinned crude oil prices CLc1.

Energy companies to take advantage of the price disparity are spending heavily in fields like the Bakken in North Dakota and the Eagle Ford in South Texas, where crude oil and natural gas with a high-liquids content are trapped in rock formations.

Despite crude oil prices off the year’s high of more than $100 per barrel, EXCO said it was ‘not afraid of oil’.

The company said it was open to extending their partnership with BG Group , but the British gas producer had not expressed its interest yet.

In May last year, BG Group and EXCO entered into a joint venture for EXCO’s assets in the Appalachian Basin, primarily in Pennsylvania and West Virginia.

The company said one of its main challenges had been the small size of its working interests, and added that it would not need a partner for the deals it had been approached for.

Dallas, Texas-based EXCO has working interests in properties in the Permian basin in West Texas, New Mexico, and others in East Texas, North Louisiana.

On Tuesday, Exco Resources Inc posted its first estimate-lagging profit in three quarters, hurt by higher costs.

The company’s shares were trading down 3 percent at $11.48 on Wednesday on the New York Stock Exchange. (Reporting by Divya Lad in Bangalore; Editing by Sriraj Kalluvila)

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