UPDATE 1-Exco Resources sells shale assets to JV partner

Wed Feb 9, 2011 5:17pm EST

* BG Group pays $230 mln for 50 pct in Mercellus property

* Proceeds used to repay debt

Feb 9 (Reuters) - Oil and gas company Exco Resources Inc (XCO.N) said it received $230 million from its joint venture partner BG Group (BG.L) for 50 percent of Marcellus shale assets it recently acquired.

Exco bought the properties for $459.4 million in December from Chief Oil & Gas. British gas producer BG Group had the right to buy 50 percent of the assets. [ID:nSGE6BK0BG]

Dallas-based Exco used the proceeds from the sale to repay part of a loan, it said in a statement.

Shares of Exco, whose chief executive launched a $4.36 billion bid for his company in November, closed flat at $20.13 on Wednesday on the New York Stock Exchange. (Reporting by Krishna N. Das in Bangalore; Editing by Joyjeet Das)

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