UPDATE 1-Exco buys some Marcellus Shale assets for $459 mln

Tue Dec 21, 2010 5:40pm EST

* Buys properties from Chief Oil and gas

* Says JV partner BG has right to buy 50 pct of assets

Dec 21 (Reuters) - Oil and gas company EXCO Resources Inc (XCO.N), the target of a buyout by its CEO, said it acquired some Marcellus shale properties for $459.4 million from Chief Oil & Gas LLC and related parties. The assets fall within the area of mutual interest established by existing joint venture with British gas producer BG Group (BG.L) and thus, BG has the right to purchase 50 percent of the properties. [ID:nLDE6490DB]

The acquired assets include producing properties with gross output of about 40 million cubic feet per day from 15 producing wells prospects located in Northeastern Pennsylvania, the company said. Last month, EXCO's CEO Douglas Miller teamed up with investors including oilman T. Boone Pickens to bid for the company for about $4.36 billion. [ID:nSGE6A00GV]

EXCO shares, which remained flat since the its CEO made the offer on Nov. 1, closed at $19.32 on Tuesday on the New York Stock Exchange. (Reporting by Thyagaraju Adinarayan in Bangalorel; Editing by Vyas Mohan)

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