BG Group spends $1.3bn on Exco shale gas stake

BG GROUP said yesterday it would pay Dallas-based Exco Resources $1.3bn (&pound;789m) for an interest in shale gas resources, as oil and gas firms continue to snap up assets before an economic recovery drives prices higher.<br /><br />The companies said that each would own 50 per cent of a venture to which Exco is contributing 120,000 acres of land in the Haynesville shale gas area in Texas and Louisiana, plus associated gas infrastructure.<br /><br />The deal &ndash; the latest in a flurry of mergers and acquisitions in the sector in the past month &ndash; represents the gas producer's entry into the shale gas business, until recently one of the hottest targets for US oil and gas investment.<br /><br />Production of gas from shale formations, a more complex operation than producing from simple gas reservoirs, has jumped in recent years due to US gas prices soaring on the back of record crude prices.