DALLAS--(BUSINESS WIRE)--Jun. 29, 2009-- EXCO Resources, Inc. (NYSE: XCO) (“EXCO”) today announced that it has reached an agreement with Encore Operating, L.P., (NYSE: EAC) (“Encore”) to sell its Norge Marchand Unit in Grady County, Oklahoma, other selected Oklahoma, Kansas and Texas Panhandle assets, and its Gladewater Field and Overton Field assets in Gregg, Upshur and Smith Counties, Texas for $375 million, subject to customary purchase price adjustments.

As of December 31, 2008, the properties include estimated proved reserves of 4.7 million barrels of oil (Mmbbls) and 148 billion cubic feet (Bcf) of natural gas, or 176 billion cubic feet of natural gas equivalent (Bcfe), based on year-end SEC pricing. Current net production includes 1,223 barrels of oil per day and 26.9 million cubic feet per day of natural gas, or 34.1 million cubic feet of natural gas equivalent per day. The sale includes approximately 66,700 net acres, of which approximately 7,000 acres are undeveloped, and also includes gathering systems and compression attributable to certain of the assets.

The sale to Encore is expected to close in August 2009, subject to customary closing conditions, and is effective as of April 1, 2009.

Douglas H. Miller, EXCO’s Chief Executive Officer, commented, “As we have previously announced, we have elected to sell certain non-strategic assets, and this sale is a part of that effort. We have now reached agreement on nearly $450 million of such asset sales and will continue our efforts.”

EXCO was advised by Scotia Waterous (USA) Inc. and Tristone Capital, LLC in these transactions.

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.