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DALLAS /BusinessWire/ -- EXCO Resources, Inc. (NYSE:XCO) ("EXCO") today announced an agreement to purchase Common Resources, L.L.C. ("Common") jointly with BG Group plc (LSE: BG.L) ("BG Group") for approximately $446 million in cash, subject to customary purchase price adjustments. Common owns producing assets, gathering lines and acreage in Shelby, San Augustine and Nacogdoches Counties, TX. Common's Eagle Ford assets are not part of the acquisition. Before closing, Common will sell or otherwise distribute its Eagle Ford assets to a third party.

The assets include producing properties with more than 39 Mmcf per day of gross production (12 Mmcf per day net) from 7 producing wells and approximately 29,200 net acres prospective for the Haynesville and Bossier shales. EXCO has identified over 1,000 additional gross drilling locations. The acreage is well situated in what appears to be a highly productive area in the Shelby Trough. The Shelby Trough runs from the southeast corner of DeSoto Parish, LA through southern Shelby, northern San Augustine and eastern Nacogdoches Counties, TX. The Haynesville shale is located at depths between 11,500 and 14,500 feet on this acreage, with the majority at an average depth of about 13,000 feet. Industry results in the area have typically ranged from 12 to 15 Mmcf per day of initial production ("IP"), with one well having a reported IP of over 30 Mmcf per day. Common's last three Haynesville wells had IP rates of 16.7 to 21.2 Mmcf per day. The Bossier shale is located at depths between 11,000 and 14,000 feet on this acreage, with the majority at an average depth of about 12,500 feet. Industry results in the area have Bossier IP rates ranging from 9 to 21 Mmcf per day. Common has drilled and completed one Bossier well which had an IP of 11.3 Mmcf per day. Common has extensive 2D seismic data over the area as well as 136 miles of 3D seismic, with an additional 178 miles of 3D seismic to be shot between March and June 2010.

EXCO and BG Group will each acquire 50% of Common. The development of these assets will be governed by the existing joint venture with BG Group, including BG Group funding 75% of EXCO's 50% of Haynesville and Bossier drilling and completion costs subject to the limitations in the original joint venture. EXCO's net acquisition price of $223 million, subject to customary purchase price adjustments, will be financed with borrowings under its credit agreement. The acquisition is expected to close on May 12, 2010, and has an effective date of February 1, 2010.

Douglas H. Miller, EXCO's Chief Executive Officer, commented, "These assets have the potential to become a second major focus area for EXCO outside of our core DeSoto Parish position. The geology and results look very similar to those in DeSoto, and the Bossier could be just as productive. The position is large enough to provide a capital efficient entry into this area of the play, and the acreage is very contiguous."

EXCO Resources, Inc. is an oil and natural gas exploration, exploitation, development and production company headquartered in Dallas, Texas with principal operations in East Texas, North Louisiana, Appalachia, and West Texas.

Additional information about EXCO Resources, Inc. may be obtained by contacting EXCO's Chairman, Douglas H. Miller, or its President, Stephen F. Smith, at EXCO's headquarters, 12377 Merit Drive, Suite 1700, Dallas, TX 75251, telephone number (214) 368-2084, or by visiting EXCO's website. EXCO's SEC filings and press releases can be found under the Investor Relations tab.