Exco CEO:To Decide On Marcellus Shale Joint Venture In 2 Weeks

By Isabel Ordonez, Of DOW JONES NEWSWIRES

NEW ORLEANS -(Dow Jones)- Exco Resources Inc. (XCO) Chief Executive Douglas Miller said Tuesday the company could announce a joint venture in the Marcellus shale in the next two weeks.

Speaking to analysts at the Howard Weil Energy Conference in New Orleans, Miller said the company is still analyzing its opportunities to enter into a partnership to develop some of its acreage in Marcellus, an emerging shale gas play located in the northeastern U.S.

"I will tell you, the heat is on to make a decision," Miller said.

The executive didn't provide the names of potential partners.

The company already has a joint venture with U.K.-based international energy company BG Group PLC (BRGYY, BG.LN) in the Haynesville shale play in East Texas and North Louisiana. Last year, the European company took a 50% interest in certain holdings of Dallas-based Exco in a deal valued at $1.3 billion.

Miller also said that costs in the Haynesville shale are increasing in the last few months due to the intense drilling activity of companies such as Chesapeake Energy Corp. (CHK), Encana Corp. (ECA) and Petrohawk Energy Corp. ( HK).

The Marcellus and Haynesville shales are rapidly developing natural gas fields.

-By Isabel Ordonez, Dow Jones Newswires; 713-314-6090; isabel.ordonez@ dowjones.com

Second paragraph from the bottom - what would cause the cost to go up in the last few months unless it is the leasing bonus - if so has price per acre for leasing gone up - last talk in the rumor mill was 6000 - 6500 per acre?