Seeking Alpha Transcript of 3Q call:http://seekingalpha.com/article/304680-exco-resources-ceo-discusses...

"Harold L. Hickey

Thank you, Paul. Slide 13, I'll give you some color on the excellent operational results we had during the third quarter of '11. Haynesville, in both of our areas, continues to perform very well. In DeSoto, we've had very steady performance as we've continued to realize IP rates in the 19 million a day range. In East Texas, the performance is very exciting as we continue to see IP rates in the 28 million a day rates from the Haynesville wells and 26 million, 27 million a day from the Bossier wells.

We have a record production volumes of 540 million a day, we've exceeded 1.2 Bcf a day of gross operating production East Texas/North Louisiana when you add OBO in with that. We're over 1.7 Bcf a day. All the wells we drilled during the quarter and completed came in successfully as we forecast, so 100% drilling success rate from our 27 operated rigs. And you can see that of those 27 rigs, 4 in Appalachia, only 1 in the Permian, 22 in East Texas/North Louisiana. Of those 22 in East Texas/North Louisiana, we have 15 in our Holly area and 7 down in Shelby. And I'll note, that we've also got about 8 outside the operating wells drilling in the East Texas/North Louisiana region for this week. Hence, working interest there is about 15%."

"Slide 15 is more detail on East Texas/North Louisiana. I've talked about our volume there on a gross basis. Net production totaled some for 419 million a day as of a couple of weeks ago. We currently have 264 operated wells and 144 wells that are operated by others. Haynesville horizontals are actually flowing to sales. And we're seeing some good improvement in our drilling and optimization of our frac designs.

I'll remind you that we have 2 focus areas, the DeSoto or Holly area up in the Northern DeSoto Parish and then our Shelby area down in East Texas in Nacogdoches, San Augustine and Shelby counties. I'll remind you that in Shelby, the drilling is a little bit tougher. It's high pressure, high temperature, a little deeper, a little longer laterals, so some of our costs are there, and I'll talk about that in a minute.

But one thing that's happened in Shelby that really encouraged about is the fact that the wells have really, really high pressures. They're coming on in over 10,000 pounds, so really good results there as we start to move toward the development program.

Slide 16, we can see how we've improved some of our cycle times and completions as we've driven down some of our cost. Now we'll say this cost isn’t quite as low as what we've forecast. We've had some increased labor cost from some of our drilling contractors. We had to pay a bit more for jail and diesel in some of our operating activities. But we're still targeting on bringing that down a bit more as we improve our cycle time and when we manage our business there.

In Holly, one of the big effort is continue to modify the profit mix and clusters spacing in order to optimize our completions. And in Shelby, Doug referenced it, it's a very, very important point that we have a very significant test ongoing in Shelby where we're drilling across 2 sections, and it's us and another working interest partner that we're going to drill both Haynesville and Bossier well in a section for doing that simultaneously. We're going to bring those wells on. We'll complete them all together, so we could have some 200-plus million a day and probably even more than that gross flow into sales in middle of the first quarter of next year. So that will be a very, very exciting activity for us to monitor and manage."

I haven't been able to access the Exco website this morning to get the presentation.