02-07-09 BG Group agreed to pay $ 1 bn to Exco Resources, Dallas, for 50 % interest in 120,000 acres in East Texas and north Louisiana. Most of the property involves the Haynesville shale play.
BG and Exco plan to jointly develop and produce the acreage. Exco will be the operator.

The acquisition adds 2.6 tcf to BG's resources with current net production of 78 mm cfpd. Production is anticipated to increase to 250 mm cfpd net to BG in 2012.
BG Chief Executive Officer Frank Chapman said, "The transaction increases BG Group's exposure to long-term unconventional gas resources and skills."

In addition, BG agreed to negotiate to acquire a 50 % interest in Exco gas-gathering and transportation assets for $ 249 mm.
The upstream acquisition and the joint development agreement are conditional on BG's midstream acquisition and also upon regulatory approvals.