British energy firm BG buys 50-percent of Exco assets
British energy producer BG Group said Monday it would buy a 50-percent share of US Appalachian shale gas activities from its US partner Exco Resources for 950 million dollars (727 million euros).
Shales are sedimentary rocks which are rich in fossil fuels but it is expensive to extract gas from them.
"BG Group will acquire a 50-percent interest in companies that hold Exco's producing and non-producing assets in the Appalachian Basin, located primarily in Pennsylvania and West Virginia, USA," BG said in a statement.
The London-listed company said it would pay 800 million dollars in cash plus another 150 million dollars towards future drilling costs.
"We are delighted to expand our highly successful alliance with Exco built around complementary skills and objectives," added BG Chief Executive Frank Chapman.
Back in June, BG agreed to pay 1.055 billion dollars to Exco Resources for a 50-percent stake in a shale gas project based in eastern Texas and northern Louisiana.
© 2010 AFP