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Some EXCO Production Shut In Following Plant Incident

As of Monday 10-20 MMcf/d of EXCO Resources Inc. net production remained shut in pending space availability on alternate pipeline routes or resumption of treating operations at TGGT Holdings LLC plants following a May 28 incident that prompted the shutdown of the two plants, the company said.

The shut down at the two facilities had cut EXCO's net production by an estimated 80-100 MMcf/d for a six-day period, it said.

EXCO said an incident occurred at its 50% owned TGGT Holdings amine treating facility in northwest Red River Parish, LA. One EXCO employee was killed and a TGGT contract employee was injured.

The treating facility, which is north of Coushatta, LA, was shut down immediately, EXCO said. As a precautionary measure, another TGGT amine treating facility in DeSoto Parish, LA, was also shut down pending results of investigations.

"At this point, substantially all of the natural gas production has been rerouted to alternate pipeline facilities and is flowing to sales," EXCO said Monday.

The TGGT plant involved in the incident normally treats about 450 gross MMcf/d. Combined, both of the TGGT treating facilities treat about 900 gross MMcf/d. EXCO drilling and completion activities were unaffected and continue as planned, the company said. "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," it said.

TGGT Midstream operates in East Texas and North Louisiana and is owned by EXCO and BG Group. EXCO is headquartered in Dallas and has principal operations in East Texas, North Louisiana, Appalachia and West Texas.

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