DALLAS–(BUSINESS WIRE)–May 16, 2008–EXCO Resources, Inc. (NYSE: XCO) – The Board of Directors of EXCO Resources, Inc. (NYSE:XCO) has approved an increase of $123 million in its 2008 capital budget, of which $90 million is allocated for the exploitation of its Haynesville Shale position in East Texas/North Louisiana, $30 million for additional drilling in its Vernon Field in North Louisiana, $2 million for additional Cotton Valley drilling in other areas, and $1 million for information technology initiatives. This increase brings the total 2008 capital budget to $923 million. The $90 million increase related to the Haynesville Shale area in East Texas/North Louisiana is to fund leasing of additional acreage beyond the current company holdings (which exceed 100,000 net acres), drilling of both horizontal and additional vertical wells, and development of infrastructure to support future growth of this major resource opportunity. The increase related to the Vernon Field is to fund drilling of an additional seven wells during 2008. This revised 2008 capital spending budget of $923 million is expected to be fully funded through internally generated funds.

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

Home

SOURCE: EXCO Resources, Inc.

DALLAS, Jul 15, 2008 (BUSINESS WIRE) — EXCO Resources, Inc. (NYSE:XCO) today announced it has closed an acquisition of producing oil and natural gas properties, acreage and other assets in Gregg, Rusk, and Upshur Counties, Texas for approximately $252 million from private sellers, subject to customary post-closing purchase price adjustments. EXCO’s average working interest in the properties is approximately 94% with an average net revenue interest of 72%. EXCO’s estimate of net proved reserves acquired is 109 Bcfe and estimated total net reserves (proved, probable and possible) exceed 370 Bcfe exclusive of Bossier/Haynesville shale potential, discussed below, all based on NYMEX strip pricing at the contract effective date of March 1, 2008.
The assets include producing properties with more than 15 Mmcfe per day of net production from 83 producing wells and approximately 11,000 gross acres. Also included in the assets is a 50 mile gathering system with compressors, a dehydration unit and a refrigeration plant. EXCO estimates that there are more than 500 additional drilling locations in the Cotton Valley and Travis Peak formations, of which 92 are proved. EXCO will operate the field and estimates a capital budget of $20 million to drill 9 wells during the remainder of 2008. The current primary productive formations in the field are the Upper Cotton Valley, Pettet and Travis Peak. A majority of the acquired leasehold covers rights to all depths, including the Bossier/Haynesville shale. In prior years, two vertical wells were drilled into the Bossier/Haynesville shale on this acreage and logged pay potential in these horizons. Recent industry activity in the vicinity of the acquired acreage has confirmed the presence of shale potential. EXCO plans to drill at least one vertical well in 2008 to further delineate potential of the Bossier/Haynesville, and EXCO estimates that there could be more than 100 potential shale locations across the acquired acreage.

The acquisition of these properties will be financed with a $300 million Senior Unsecured Term Loan due December 15, 2008, at our unrestricted subsidiary, EXCO Operating Company, LP, formerly known as EXCO Partners Operating Partnership, LP.

EXCO Resources, Inc. is a public oil and natural gas acquisition, exploitation, development and production company headquartered in Dallas, Texas with principal operations in Texas, Louisiana, Oklahoma, Ohio, 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 our website at www.excoresources.com. Our 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. 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.

The SEC has generally permitted oil and natural gas companies, in filings made with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use the terms “probable,” “possible,” or “unproved” to describe volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by the company. While we believe our calculation of unproved drillsites and estimations of unproved reserves have been appropriately risked and are reasonable, such calculations and estimates have not been reviewed by third party engineers or appraisers. Investors are urged to consider closely the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2007 available on our website at www.excoresources.com under the Investor Relations tab or by calling us at (214) 368-2084.

SOURCE: EXCO Resources, Inc.

EXCO Resources, Inc.
Douglas H. Miller, 214-368-2084
Chairman
or
Stephen F. Smith, 214-368-2084
President

Home

DALLAS–(BUSINESS WIRE)–July 16, 2008–EXCO Resources, Inc. (NYSE: XCO) today announced that it has engaged Goldman, Sachs & Co. to explore possible joint venture opportunities with various interested parties to enhance exploitation and development of its East Texas/North Louisiana and Appalachia operating areas.

EXCO’s reserves in East Texas/North Louisiana include over 2.7 Tcfe of proved, probable and possible (3P) reserves, of which 1.1 Tcfe is proved. EXCO’s East Texas/North Louisiana interests also include 292,000 net acres, 255 Mmcfe/d of net production, and over 3,000 undrilled Cotton Valley, Hosston and other conventional locations. EXCO’s acreage includes over 115,000 net acres which are prospective for the Bossier/Haynesville shale. Based on 80-acre spacing, this shale acreage could contain over 1,400 drilling locations with substantial unbooked reserve potential.

EXCO’s 3P reserves in Appalachia exceed 1.1 Tcfe of reserves of which 0.6 Tcfe is proved. EXCO’s Appalachia region includes 1.1 million net acres, 60 Mmcfe/d of shallow production, over 8,100 shallow drilling locations and nearly 400,000 net acres of Marcellus shale potential of which 117,000 net acres are also prospective for the Huron shale. Based on 80-acre spacing, the shale acreage could contain 6,400 drilling locations with substantial unbooked potential.

EXCO also has substantial midstream assets in East Texas/North Louisiana which currently gather and transport in excess of 500 Mmcf/d of natural gas.

The possible joint venture transactions could include a sale of up to 50% of EXCO’s reserves, production, acreage and other interests in either or both areas, with a joint development program to be conducted with the potential partner or partners. A separate joint venture is contemplated for the East Texas/North Louisiana midstream assets. EXCO anticipates using cash proceeds from any such transaction to reduce debt, help fund the exploitation and development of its shale potential and for other general corporate purposes.

There is no assurance that this joint venture process will result in EXCO changing its current business plan, pursuing a particular joint venture or other transaction or completing any such transaction. EXCO does not expect to update the market with any further information on the joint venture process unless and until its Board of Directors has approved a specific transaction or otherwise deems disclosure appropriate.

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, 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: proposals received from potential joint venture partners, 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. EXCO undertakes no obligation to publicly update or revise any forward-looking statements.

The SEC has generally permitted oil and natural gas companies, in filings made with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use the terms “probable,” “possible,” or “unproved” to describe volumes of reserves potentially recoverable through additional drilling or recovery techniques that the SEC’s guidelines prohibit us from including in filings with the SEC. These estimates are by their nature more speculative than estimates of proved reserves and accordingly are subject to substantially greater risk of being actually realized by the company. While we believe our calculation of unproved drillsites and estimations of unproved reserves have been appropriately risked and are reasonable, such calculations and estimates have not been reviewed by third party engineers or appraisers. Investors are urged to consider closely the disclosure in our Annual Report on Form 10-K for the year ended December 31, 2007 available on our website at www.excoresources.com under the Investor Relations tab or by calling us at 214-368-2084.

CONTACT: EXCO Resources, Inc.
Douglas H. Miller, 214-368-2084
Chairman
or
Stephen F. Smith, 214-368-2084
President

Home

SOURCE: EXCO Resources, Inc.

DALLAS–(BUSINESS WIRE)–July 16, 2008–EXCO Resources, Inc. (NYSE: XCO) today announced that it will convert all outstanding shares of its Series A-1, Series B and Series C 7.0% Cumulative Convertible Perpetual Preferred Stock, par value $0.001 per share, and Series A-1 Hybrid Preferred Stock, par value $0.001 per share (collectively, the “Preferred Stock”), into its common stock, par value $0.001 per share (“Common Stock”), on July 18, 2008 (the “Conversion Date”).

Pursuant to the terms of the Preferred Stock, EXCO has the option to cause all or any portion of the Preferred Stock to be automatically converted into Common Stock. Prior to exercising this option, the volume weighted average price of the Common Stock must equal or exceed $33.25 for at least 20 trading days in any period of 30 consecutive trading days, including the last trading day of such 30-day period.

At the close of business on the Conversion Date, approximately 526.3 shares of Common Stock will be issued upon conversion of each share of Preferred Stock, plus cash in lieu of any fractional shares. Currently, there are 199,900 shares of Preferred Stock outstanding, which would result in the issuance of approximately 105.2 million shares of Common Stock upon conversion. After the conversion, EXCO will have approximately 210.9 million shares of Common Stock outstanding. The conversion of the Preferred Stock has the effect of increasing the book value of shareholders’ equity by approximately $2.0 billion.

Additionally, holders of the Preferred Stock will receive a cash payment for any accrued but unpaid dividends of approximately $12.8 million with respect to the Preferred Stock through the Conversion Date. After the Conversion Date, dividends will cease to accrue on the Preferred Stock and all rights of the holders with respect to the Preferred Stock will terminate, except for the right to receive the whole shares of Common Stock issuable upon conversion, accrued dividends through the Conversion Date and cash in lieu of any fractional shares, as described above. The conversion of all outstanding shares of Preferred Stock into Common Stock will eliminate EXCO’s obligation to pay quarterly cash dividends of $35.0 million, resulting in annual dividend savings of $140.0 million.

A conversion notice will be express mailed to the holders of record of the Preferred Stock as of the close of business on the Conversion Date confirming EXCO’s election to convert the Preferred Stock. Continental Stock Transfer and Trust Company will serve as the conversion agent for the Preferred Stock. For further information about the conversion, please contact:

Continental Stock Transfer and Trust Company
Attention: Compliance Department
17 Battery Place, 8th Floor
New York, NY 10004
(212) 509-4000
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. 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

Home

SOURCE: EXCO Resources, Inc.

DALLAS–(BUSINESS WIRE)–July 17, 2008–EXCO Resources, Inc. (NYSE: XCO) today announced that it will be releasing second quarter 2008 earnings on Tuesday, August 5, 2008, after market close.

EXCO will host a conference call on Wednesday, August 6, 2008 at 1:30 p.m. (Dallas time) to discuss the contents of this release and respond to questions. Please call (800) 309-5788 if you wish to participate, and ask for the EXCO conference call ID# 56416285. The conference call will also be webcast on EXCO’s website at http://www.excoresources.com under the Investor Relations tab. Presentation materials related to this release will be posted on EXCO’s website on Tuesday, August 5, 2008, after market close.

A digital recording will be available starting two hours after the completion of the conference call until 11:59 p.m., August 13, 2008. Please call (800) 642-1687 and enter conference ID# 56416285 to hear the recording. A digital recording of the conference call will also be available on EXCO’s website.

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.

CONTACT: EXCO Resources, Inc.
Douglas H. Miller, 214-368-2084
Chairman
or
Stephen F. Smith, 214-368-2084
President

Home

SOURCE: EXCO Resources, Inc.

DALLAS–(BUSINESS WIRE)–Sept. 23, 2008–EXCO Resources, Inc. (NYSE: XCO) today announced that it will be releasing third quarter 2008 earnings on Wednesday, November 5, 2008, after market close.

EXCO will host a conference call on Thursday, November 6, 2008, at 10:00 a.m. (Dallas time) to discuss the contents of this release and respond to questions. Please call (800) 309-5788 if you wish to participate, and ask for the EXCO conference call ID# 65986498. The conference call will also be webcast on EXCO’s website at http://www.excoresources.com under the Investor Relations tab. Presentation materials related to this release will be posted on EXCO’s website on Wednesday, November 5, 2008, after market close.

A digital recording will be available starting two hours after the completion of the conference call until 11:59 p.m., November 13, 2008. Please call (800) 642-1687 and enter conference ID# 65986498 to hear the recording. A digital recording of the conference call will also be available on EXCO’s website.

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.

CONTACT: EXCO Resources, Inc.
Douglas H. Miller, Chairman, 214-368-2084
or
Stephen F. Smith, President, 214-368-2084

Home

SOURCE: EXCO Resources, Inc.

DALLAS–(BUSINESS WIRE)–Dec. 8, 2008–EXCO Resources, Inc. (NYSE: XCO) today announced that its wholly-owned subsidiary, EXCO Operating Company, LP, closed a $300 million Senior Unsecured Term Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and various lenders (the Term Loan). The Term Loan is due January 15, 2010 and bears interest at the greater of 10% or 600 basis points over LIBOR. Fees and expenses under the Term Loan aggregated $26 million at closing with duration fees due on June 15, 2009 and September 15, 2009 to the extent that the Term Loan remains outstanding at those dates.

The proceeds of the Term Loan were used to repay and terminate the original Senior Unsecured Term Credit Agreement due December 15, 2008.

Considering the debt outstanding under our revolving credit agreements, the 71/4% Senior Notes and the Term Loan, EXCO’s weighted average interest cost will be 5.8% at current LIBOR rates, including the fees and expenses incurred in connection with the Term Loan.

EXCO is presently reviewing its capital budget for 2009 and in view of continuing softness in the natural gas and oil prices, contemplates beginning the year with a capital budget that will be substantially less than 2008 and that will produce free cash flow for debt reduction. Our current production level is approximately 74% hedged for 2009 at a weighted average price of $8.18 per Mcf for natural gas and $80.64 per Bbl for crude oil. These hedges will help mitigate the recent declines in product prices and contribute to meeting our cash flow targets and debt reduction objectives. In addition, EXCO continues to pursue non-core asset sales.

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, 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: 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. EXCO undertakes no obligation to publicly update or revise any forward-looking statements.

CONTACT: EXCO Resources, Inc. Douglas H. Miller, 214-368-2084 Chairman or Stephen F. Smith, 214-368-2084 President http://www.excoresources.com Source: EXCO Resources, Inc.

DALLAS–(BUSINESS WIRE)–Dec. 9, 2008–EXCO Resources, Inc. (NYSE: XCO) today announced the completion of the Oden 30H#6 in DeSoto Parish, Louisiana, its first Haynesville horizontal well completion. The Oden 30H#6 was drilled vertically to a depth of 12,304 feet in the pilot hole where 180 feet of whole core was recovered in the Haynesville Shale. The horizontal target was selected, and the well was plugged back and drilled with a 4,481 foot lateral to a total measured depth of 16,083 feet. We completed the well with a nine stage fracture stimulation treatment using 3.2 million pounds of proppant. The well had an initial production rate of 22.9 million cubic feet of gas per day (MMcf/d) on a 26/64th inch choke with 7,800 pounds per square inch (psi) flowing casing pressure. The well has been flowing to sales for the past five days and, in the last 24 hours, averaged 22.5 MMcf/d on a 26/64th inch choke and 7,800 psi flowing casing pressure. EXCO owns a 100% working interest and a 75% net revenue interest in the well.

EXCO owns a substantial acreage position in the core area of the Haynesville play in North Louisiana and East Texas, much of which is held by shallow production. We have drilled and completed several vertical Haynesville tests and have identified productive Haynesville shale across much of our acreage holdings. We have conducted a variety of core and fluid studies from data acquired in our vertical well program and have tested a combination of fluid types and fracture stimulation designs. The results of those tests were instrumental in developing the completion plan for our first horizontal well. EXCO has 2 operated horizontal wells, 1 vertical well and 2 outside operated horizontal wells in progress in the Haynesville play. We plan to drill 25 or more horizontal Haynesville wells in 2009.

Douglas H. Miller, EXCO’s Chairman, commented, “This well is the largest single well in our Company’s history and represents the first of many horizontal drilling locations that we have in the Haynesville play.”

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, 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: 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. EXCO undertakes no obligation to publicly update or revise any forward-looking statements.

CONTACT: EXCO Resources, Inc. Douglas H. Miller, Chairman Stephen F. Smith, President 214-368-2084 http://www.excoresources.com Source: EXCO Resources, Inc.

DALLAS, Jan. 8 /PRNewswire-FirstCall/ — EXCO Resources, Inc. (NYSE: XCO) today announced that it has completed the sale of EXCO’s producing properties and remaining undeveloped drilling locations in the Wattenberg Field area of the DJ Basin, Colorado. The transaction included substantially all of EXCO’s assets in the area. The adjusted purchase price paid at closing was $131.9 million.

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. 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.

SOURCE EXCO Resources, Inc.

CONTACT: Douglas H. Miller, or Stephen F. Smith, both of EXCO Resources, Inc., +1-214-368-2084

DALLAS, Feb. 2 /PRNewswire-FirstCall/ — EXCO Resources, Inc. (NYSE: XCO) today announced an agreement to acquire producing oil and natural gas properties, acreage and other assets in multiple fields located in the Mid-Continent, South Texas and Gulf Coast areas of Oklahoma and Texas from Anadarko Petroleum Corporation (NYSE: APC) for $860 million in cash, subject to customary purchase price adjustments. The acquisition includes assets in the Golden Trend, Watonga-Chickasha, Mocane-Laverne and Reydon areas in Oklahoma, and the Felicia, Speaks and Cage Ranch areas of South Texas.

This acquisition includes producing properties with net production at year-end 2006 of approximately 103 million cubic feet per day equivalent (Mmcfed) of natural gas and oil from approximately 1,327 producing wells. The production consists of approximately 50 Mmcfed from 1,062 wells in the Mid-Continent area, and 53 Mmcfed from approximately 265 wells in the South Texas area. Average acquired working interests and net revenue interests are 75% and 59% in the Mid-Continent, and 63% and 49% in South Texas, respectively.

Proved reserves currently identified, based on NYMEX strip pricing, total more than 400 billion cubic feet equivalent (Bcfe) and are 72% proved developed and 87% natural gas. EXCO has identified approximately 200 proved undeveloped drilling opportunities in the package, with 88% of the opportunities located in the Mid-Continent. The Mid-Continent assets contain approximately 76% of the total proved reserves in the transaction. The reserves are located in multiple formations, including but not limited to the Big 4, Bromide, Springer, Morrow, Chester, Tonkawa, Redfork and Granite Wash in the Mid-Continent and the Frio, Vicksburg, Miocene, Yegua and Wilcox in South Texas. Approximately 91% of the estimated value of the Mid-Continent reserves are operated, while approximately 85% of the estimated value of the reserves in South Texas are operated. Net acreage included in the acquisition totals approximately 290,000 acres, more than 71% of which is located in the Mid-Continent.

In connection with the acquisition, hedges in respect of a significant portion of estimated production for 2007, 2008 and 2009 were entered into by the seller and will be assumed by EXCO.

The transaction is expected to close in April 2007, subject to customary conditions to closing and governmental clearance. The effective date of the sale is January 1, 2007.

The acquisition will be financed with a new Revolving Credit Facility and a bridge loan from EXCO’s banking group. The financing for this acquisition will be consolidated with that for the acquisition of the Anadarko North Louisiana properties announced on December 26, 2006. EXCO is developing a deleveraging strategy and is considering alternatives. Due to this acquisition, EXCO now expects to finalize its financing plans in February 2007.

Douglas H. Miller, EXCO’s Chief Executive Officer, had the following comment: “EXCO has long been a Mid-Continent oil and gas producer. The Oklahoma assets being acquired are a perfect fit with our existing assets and bring our overall Mid-Continent production to over 75 Mmcfe per day. We continue to stress long reserve life and these assets being acquired have an overall reserve to production ratio of over 17 years. We will operate the Mid-Continent assets from our Tulsa office. The South Texas assets, while not in one of our focus areas, represent an outstanding package of properties in excellent trends. Our plans with respect to these assets will be formulated over the next few weeks.”

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 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. 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.

SOURCE EXCO Resources, Inc.

CONTACT: Douglas H. Miller, EXCO’s Chairman, or Stephen F. Smith, President, both of EXCO Resources, Inc., +1-214-368-2084