NacogdochesConnects.com

DALLAS — EXCO Resources, Inc. today announced an agreement to purchase Common Resources, L.L.C. jointly with BG Group plc 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.

Photo not provided by EXCO 

Pictured: what $446 million will buy

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.

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.

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