EXCO Resources Announces Capital Budget Increase

DALLAS--(BUSINESS WIRE)--March 13, 2008--EXCO Resources, Inc. (NYSE: XCO) - The Board of Directors of EXCO Resources, Inc. (NYSE: XCO) has approved an increase of $175 million in its 2008 capital spending budget, of which $150 million is allocated to the exploitation of its Marcellus Shale position in Appalachia and $25 million is for additional Appalachian shallow drilling related to its recently acquired shallow natural gas properties. This increase brings the total 2008 capital budget to $795 million. The $150 million earmarked for the Marcellus Shale area in Appalachia is to fund leasing of additional acreage beyond the current company Marcellus Shale holdings (which exceed 360,000 net acres), drilling of both horizontal and vertical wells, and development of infrastructure to support future growth of this major resource opportunity. The company plans to begin drilling Marcellus Shale wells in the second quarter. This revised 2008 capital spending budget of $795 million is expected to be fully funded through cash flow from operations. EXCO Resources, Inc. is an oil and natural gas acquisition, exploitation, development and production company headquartered in Dallas, Texas with principal operations in Texas, Louisiana, Ohio, Oklahoma, Pennsylvania and West Virginia. 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 at http://www.excoresources.com. EXCO's SEC filings and press releases can be found under the Investor Relations tab. This release may contain forward-looking statements relating to future financial results or business expectations. Business plans may change as circumstances warrant. This budget is an estimate only and could change depending upon many factors including results of drilling, costs of drilling and other projects, cash flows and commodity prices. This budget could increase or decrease depending upon acquisitions or divestitures completed during 2008. Actual results may differ materially from those predicted as a result of factors over which EXCO has no control. Such factors include, but are not limited to: acquisitions, recruiting and new business solicitation efforts, estimates of reserves, commodity price changes, the extent to which EXCO is successful in integrating recently acquired businesses, regulatory changes and general economic conditions. These risk factors and additional information are included in EXCO's reports on file with the Securities and Exchange Commission. CONTACT: EXCO Resources, Inc. Douglas H. Miller, 214-368-2084 Chairman or Stephen F. Smith, 214-368-2084 President SOURCE: EXCO Resources, Inc.