We currently have 13 operated drilling rigs across our portfolio, and we anticipate that this will increase to 17 during the first quarter and remain relatively flat throughout the remainder of 2010. Details of our plans within the various divisions and entities follow:

                              Number    Drilling    Other      Total
(Dollars in millions)         of Wells  Capital     Capital    Capital
East Texas/North Louisiana    138       $    126.1  $   129.1  $   255.2
Appalachia                    27             65.0       89.2       154.2
Permian                       40             26.3       2.9        29.2
TGGT Holdings (Midstream JV)  --             --         7.8        7.8
Corporate and Other           --             --         25.0       25.0
Total                         205       $    217.4  $   254.0  $   471.4

East Texas/North Louisiana Division:

The capital budget program in East Texas/North Louisiana includes plans to spend $255.2 million net to EXCO, or approximately 54% of the total EXCO capital budget. We plan to drill and complete 115 gross (36.6 net) operated and 23 gross (1.3 net) non-operated wells in the division.

EXCO/BG Group Joint Venture (JV) -- While we plan to spend a total of $740.8 million within the JV, only $165.3 million of this amount will be spent by EXCO as BG Group will fund $205.1 million of EXCO's portion of deep drilling and completion costs. The carry results in BG Group's paying 75% of EXCO's share of deep drilling and completion until BG Group's $400 million carry commitment is satisfied. Of the $165.3 million that is net to EXCO, $78.9 million will be spent for drilling and completion costs, $50.0 million for lease acquisitions, $31.8 million for operations projects, and $4.6 million for seismic data acquisition. Since closing the joint venture in August, we have acquired approximately 17,000 additional net acres. BG Group has the right to acquire half of these acres. We continue to negotiate for the acquisition of more acreage.

We are primarily drilling Haynesville shale targets, and we plan to have 14 operated drilling rigs within the JV area throughout the year. These rigs should allow us to drill and complete 108 gross (30.6 net) operated wells, 95 (26.4 net) of which are Haynesville shale targets, seven of which are Bossier shale targets, and six of which are planned Cotton Valley horizontals. Of our 14 operated drilling rigs, 13 will drill in our Holly area in DeSoto Parish and southern Caddo Parish, Louisiana, which we believe to be an outstanding area within the Haynesville shale play. One rig will drill in our Jonesville/Waskom area which includes eastern Harrison County, Texas and western Caddo Parish, Louisiana. All of our 23 planned non-operated wells to be drilled are within the JV area.

Vernon Area -- In the Vernon area, we typically drill for deep Cotton Valley targets. We plan to drill seven gross (6.0 net) wells and spend a total of $47.2 million drilling to test various zones for productivity. The overall budget within the Vernon area totals $89.9 million, with our non-drilling spending including $27.0 million for workovers and miscellaneous operations and midstream projects, $10.4 million for seismic data acquisition, and $5.3 million for land.

Appalachia Division:

The capital budget program for our Appalachia Division totals $154.2 million, of which $65.0 million will be spent to drill and complete 11 gross (11.0 net) operated horizontal Marcellus shale wells, four gross (0.6 net) non-operated Marcellus shale horizontal wells, six gross (6.0 net) vertical Marcellus shale wells, and six gross (6.0 net) shallow wells which are being drilled primarily to hold deep acreage. We have identified five focus areas within the Marcellus shale play. We expect to drill nine gross (9.0 net) operated horizontal wells during 2010 in central Pennsylvania, but we also expect to drill vertical and horizontal wells within other areas of the play to test and hold acreage.

Other spending within the division includes $22.6 million for leasing land, $17.2 million for seismic data acquisition, and $28.6 million to expand our midstream system, all within the Marcellus shale areas. The remaining $20.8 million of the capital budget will support various operations initiatives.

Permian Division:

We have a capital budget totaling $29.2 million for our Permian Division. Within this budget, $26.3 million will be spent to drill and complete 40 gross (38.7 net) operated wells, 36 gross (34.7 net) of which are in our Sugg Ranch Field. The target zones include Clearfork, Wolfcamp, Canyon and Fusselman formations, which we believe contain higher oil bearing opportunities. The remaining four wells to be drilled will target zones within existing acreage blocks we hold within the Permian Basin.

TGGT Holdings, LLC (TGGT):

TGGT is the midstream joint venture owned equally by EXCO and BG Group in East Texas/North Louisiana. The TGGT capital budget will support installation of lateral lines, well flowlines, amine treating and dehydration equipment, among others. As TGGT is a stand-alone entity, the bulk of its $101.0 million ($50.5 million net to EXCO's interest) capital budget will be provided by internal TGGT cash flow, but there is a forecast cash call of $7.8 million net to EXCO that we have included within the EXCO capital budget.

EXCO Resources, Inc. is an oil and natural gas exploration, development and production company headquartered in Dallas, Texas with principal operations in East Texas, North Louisiana, Appalachia and West Texas.

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: 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

The development well flow rates of up to 50,000 barrels oil equivalent per day are anticipated; these rates being constrained by production facilities rather than reservoir performance.

Frank Chapman, CEO of BG Group, said: "We are delighted with the results of this latest appraisal well, situated 33km from the initial Tupi well. This provides further evidence of the very large areal extent and prolific nature of the pre-salt discoveries we have made. We will be working closely with our partners to consider the optimum Tupi and Iracema development sequence, following this outstanding result."

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The FLNG processing capacity is anticipated to be up to 14 million cubic meters per day of associated gas. The three million tonnes per annum LNG produced will be shipped either to Petrobras-operated regasification terminals at Pecem and Guanabara Bay to supply the Brazilian domestic market or exported to other global markets.

Frank Chapman, CEO of BG Group, said: "We are delighted to extend our already close working relationship with Petrobras as we jointly consider options to develop the very material associated natural gas potential of the Santos Basin pre-salt."

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This FLNG vessel will operate close to the planned Santos Basin Floating Production, Storage and Off-Loading (FPSO) vessels. The vessel will process and liquefy the associated natural gas from the pre-salt fields before offloading to LNG ships.

The FLNG processing capacity is anticipated to be up to 14 million cubic metres per day of associated gas. The 3.0 million tonnes per annum (mtpa) LNG produced would be shipped either to Petrobras-operated regasification terminals at Pecem and Guanabara Bay to supply the Brazilian domestic market or exported to other global markets. BG Group is a significant participant in the Brazilian domestic market, holding a majority interest (60.1%) in ComgAis, Brazil's largest gas distribution company. In 2008, ComgAis supplied gas to 1 000 industrial, 9 000 commercial and 650 000 residential customers in SAGBPo Paulo state. Average daily volumes increased almost five-fold between 1999 and 2008, from 3.0 million cubic metres per day (mmcmd) to 14.6 mmcmd.

BG Group has developed a leading position in the global LNG industry, supplying customers in 20 LNG importing countries worldwide, with a flexible global supply portfolio, a fleet of modern ships and international commercial and logistical capabilities. This enables the Group to respond quickly to opportunities to secure greater margins. Petrobras operates 22% of the global deep waters oil production and holds the world's largest number of offshore production units (FPS and ships).

BG Group Chief Executive Frank Chapman said: "We are delighted to extend our already close working relationship with Petrobras as we jointly consider options to develop the very material associated natural gas potential of the Santos Basin pre-salt. This agreement draws on a range of strengths within each company, combining Petrobras' expertise in ultra-deepwater exploration and development with BG Group's proven skills at all points of the global gas value chain."

Indicative timeline

The tender for the development of the FLNG FEED project was issued in August 2009. In October 2009, several consortia consisting of international suppliers with liquefaction and FPSO construction experience were invited to present their initial proposals.

In December 2009, FEED contracts will be awarded to up to three of the consortia invited to bid, in accordance with the qualification criteria established for the tender process. The decision to develop separate FEED projects in parallel is intended to foster competition between the consortia, contributing to a reduction in the overall cost of the FLNG vessel.

The successful bidders will prepare their FEED proposals through 2010. BG Group and Petrobras anticipate making the Final Investment Decision (FID) in 2011. The FID outcome will be based on technical and economic feasibility studies of each of the FLNG FEED projects presented. It will also take into account an assessment of the viability of alternative development options such as the installation of new subsea pipelines connecting the Santos Basin pre-salt to onshore gas processing facilities.

Notes to Editors:

BG Group has interests in five concessions in the deep water Santos Basin: BM-S-9, 10, 11 and 50, which are operated by Petrobras; and BM-S-52, which is operated by BG Group.

BG Group also holds an operated interest in the BM-S-47 concession in the shallow water Santos Basin and holds one onshore concession (BT-SF-2) in the Sao Francisco Basin in Minas Gerais State.

BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively-priced resources to specific, high-value markets. Active in 27 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves.

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There are matters discussed in this media information that are forward looking statements. Such statements are only predictions and actual events or results may differ materially. For a discussion of important factors which could cause actual results to differ from the forward looking statements, refer to BG Group's annual report and accounts for the year ended 31 December 2008. BG Group does not undertake any obligation to update publicly, or revise, forward looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

CONTACT: Jo Thethi, BG Group Tel: +44 (0)118 929 3110 e-mail: jo.thethi@bg-group.com Edel McCaffrey, BG Group Tel: +44 (0)118 929 3508 e-mail: edel.mccaffrey@bg-group.com Tel: +44 (0)7917 185 707 (Out of Hours) Investor Relations, BG Group Tel: +44 (0)118 929 3025 e-mail: invrel@bg-group.com

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