EXCO Operating Company, LP (“EXCO”) is offering for sale certain East Texas interests associated with the Gladewater Area and Overton Field located in Upshur, Gregg and Smith Counties, Texas. Tristone Capital has been retained to provide financial advisory services. Lee Keeling & Associates, Inc. has been retained to independently evaluate the reserves. The preference is to sell the properties as one transaction, but EXCO will consider separate offers on the Gladewater Area and the Overton Field.

• Prolific Cotton Valley trend with significant net production of 24 MMCFEPD (net cash flow of $6,985 M/month) and long life reserves in a concentrated geographical area
• 98% operated position in approximately 50,000 gross acres; 90% held by production
• Extension of successful vertical well drilling program with over 200 potential locations (40 and 20-acre spacing) as well as ongoing and profitable workover program
• Cotton Valley Taylor horizontal wells and untapped Travis Peak / Pettet behind-pipes
• Overton Field lies within the Bossier Shale resource with significant deeper potential

Evaluation materials available October 21, 2008
Data Rooms open October 27, 2008
Final offers due November 20, 2008