Texas Property Acquisition Increases EXCO's Reserves by 60 Bcfe

EXCO Resources closed its second acquisition from private sellers in the Sugg Ranch, a West Texas Canyon Sand field, on October 9, 2007. It acquired an additional 45% interest for $156.6 million and became operator in 28,000 acres of leasehold and 135 producing wells. EXCO acquired an initial working interest in the field in April 2006. This acquisition brings EXCO's working interest in the field to 97%, with a 73% net revenue interest.

As estimated at the time of acquisition, this transaction increases EXCO's estimated net proved reserves in the field by an estimated 60 Bcfe and increases the estimated total reserves (proved, probable and possible) by 129 Bcfe, all calculated at NYMEX strip pricing at September 1, 2007, the effective date of the transaction.

EXCO representative said, "We believe this field contains as many as 600 additional drilling locations, of which 187 are proved. Gross production from the field is currently 30 Mmcfe per day, and, in addition to the primary Canyon Sand formation, productive formations include the Clearfork and Wolfcamp. We plan to spend approximately $98.0 million and drill 147 wells in this field in 2008. We currently have three drilling rigs operating at Sugg Ranch."

ly in the fourth quarter, EXCO closed the acquisition of more than 300 producing wells and associated undeveloped sites within its core Central Pennsylvania operating area from a private seller for approximately $16.7 million. The acquired assets contain approximately 1.5 Mmcfe per day of net production, 12.4 Bcfe of estimated proved reserves and 14.4 Bcfe of estimated total proved, probable and possible reserves, all calculated at NYMEX strip pricing at the effective date of acquisition.

EXCO also closed on the sale of certain assets across its portfolio for $23 million, subject to customary post-closing adjustments, to private parties on November 9, 2007. With this sale of approximately 8 Bcfe of net proved reserves calculated at NYMEX strip pricing and 2 Mmcfe per day of net production, EXCO exited Nebraska, Colorado, certain

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