DALLAS--(BUSINESS WIRE)--Aug. 5, 2009--
EXCO Resources, Inc. (NYSE: XCO) announced today it reached a definitive
agreement with BG Group plc (LSE: BG.L) (“BG Group”) for the joint
development and operation of EXCO’s midstream assets in East Texas/North
Louisiana. EXCO will sell BG Group a 50% interest in a newly formed
company that will hold the midstream assets, exclusive of the Vernon
Field midstream assets, for $249 million in cash, subject to customary
pre-closing and post-closing purchase price adjustments. The midstream
agreement signed today is subject to customary closing conditions and
satisfies a condition to closing for the previously announced upstream
transaction with BG Group. The midstream and the upstream transactions
are expected to close in August 2009 and have an effective date of
January 1, 2009.
Both the midstream and upstream transaction were granted approval by the
Federal Trade Commission on July 17, 2009.
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, West Texas and the Mid-Continent.
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 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, business expectations and business
transactions. Business plans may change as circumstances warrant.
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: estimates of reserves, commodity price changes,
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. EXCO undertakes
no obligation to publicly update or revise any forward-looking
statements.
Source: EXCO Resources, Inc.
EXCO Resources, Inc.
Douglas H. Miller, 214-368-2084
Chairman
or
Stephen
F. Smith, 214-368-2084
President
www.excoresources.com