Carlyle/Riverstone Sells Legend's Assets to Chesapeake

New York, NY - Legend Natural Gas, L.P. ("Legend") today announced the sale of a substantial part of its assets to Chesapeake Energy Corporation ("Chesapeake"). Legend is a Houston-based natural gas company and is owned by Carlyle/Riverstone Global Energy and Power Fund I, L.P., and Carlyle/Riverstone Global Energy and Power Fund II, L.P. Chesapeake acquired the Legend assets in an all-cash transaction. The transaction is scheduled to close on August 31, 2004.

Legend was formed in September 2001 by Carlyle/Riverstone and management to acquire and develop lower cost and longer lived natural gas reserves. Legend has completed two significant acquisitions since its creation and successfully deployed its strategy of increasing production and improving efficiency in its assets. The sale to Chesapeake represents a successful completion of the business plan. The assets sold by Legend include leasehold interests located in the Roleta, Haynes, Comitas and En Seguido fields in the Zapata County portion of South Texas. The Legend management team will continue to pursue opportunistic acquisitions and development opportunities with equity commitments from Carlyle/Riverstone.

“The management team at Legend has been successful in South Texas for over 10 years and we believe the area will provide continued opportunities to grow into the future,” said Jim Winne, President and CEO of Legend. “We look forward to a continued relationship with Carlyle/Riverstone.”

"Legend is the first exit for both of our funds. We are pleased with the performance of the company and the execution of its strategy by Legend's management team and are excited to provide superior returns to our limited partners on this investment," said David Leuschen, Managing Director of Riverstone.

Legend was advised in its sale to Chesapeake by Goldman Sachs and Sherman & Sterling.

# # #