EXCO Resources, Inc. (NYSE:XCO) (“EXCO”) today announced that an incident occurred at its 50% owned TGGT Holdings, LLC (TGGT) amine treating facility in northwest Red River Parish, Louisiana on May 28, 2011. Appropriate governmental authorities were notified and have worked with us in response to the incident. This incident resulted in the death of an EXCO employee, injury to a contract employee of TGGT, and an ongoing interruption of service at the facility.

The treating facility, which is north of Coushatta, Louisiana, was shut down immediately. As a precautionary measure, another TGGT amine treating facility located in DeSoto Parish, Louisiana was also shut down pending results of company directed investigations into causes and remediation actions. At this point, substantially all of the natural gas production has been re-routed to alternate pipeline facilities and is flowing to sales. The shut down at these facilities reduced EXCO’s net production by an estimated 80-100 Mmcf per day for a six day period. As of today, approximately 10-20 Mmcf per day of EXCO’s net production remains shut in pending space availability on alternate pipelines or resumption of treating operations at TGGT’s plants. The TGGT plant involved treats approximately 450 gross Mmcf of natural gas per day. Combined, both of the TGGT treating facilities treat approximately 900 gross Mmcf per day. EXCO’s drilling and completion activities were unaffected and continue as planned. It is expected that production interruptions could continue for several weeks. Although natural gas production levels are substantially restored as gas has been routed to alternative pipelines, we continue to incur firm transportation charges of approximately $35,000 per day, net to EXCO.

TGGT Midstream is a midstream company operating in East Texas and North Louisiana and is jointly owned by EXCO and BG Group.

EXCO Resources, Inc. is an oil and natural gas 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 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 the ability to continue re-routing gas through alternate facilities and the time it may take to restore operations at the affected facilities. 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.

Copyright Business Wire 2010