Legend Natural Gas II, LP Announces Closing of a Significant Acquisition in Texas

Houston, TX - Legend Natural Gas II, LP, today announced the closing of a significant acquisition of high quality, diversified oil and gas properties located in South Texas and along the Texas Gulf Coast producing region. The assets, which include 37 fields in 14 counties, were acquired from a major independent oil and gas producer. The sale is effective as of January 1, 2005. Financial terms were not disclosed.

With this transaction, Legend has acquired 216 active wells producing approximately 25 mmcfge/d net, of which 90% is gas. Total leasehold acreage acquired exceeds 50,000 gross acres, most of which is covered by existing 3-D seismic data. Legend will operate nearly 80% of the acquired proved producing reserves. Legend has identified numerous behind-pipe and drilling opportunities which it will commence exploiting during the second half of 2005. In addition, Legend views this acquisition as a strong complement to its ongoing exploration efforts in the prolific Wilcox producing trend of South Texas. Legend's management and staff have years of experience capitalizing on the opportunities within this trend. With this addition, Legend has acquired a strong production base and large acreage position which will provide a solid platform to increase value through production enhancements, development drilling and increased exploratory opportunities in its area of expertise.

Legend Natural Gas II, LP is a Houston based, Delaware Limited Partnership formed in 2004 for the purpose of acquiring, developing and exploring for natural gas and oil reserves in the onshore Gulf Coast region. Equity for the Partnership is being provided by the Carlyle/Riverstone Energy and Power Funds, a venture between The Carlyle Group (Washington, DC) and Riverstone Holdings, LLC (New York).

Legend Natural Gas II, LP is the successor of Legend Natural Gas, LP which was formed in October 2001, also in partnership with Carlyle/Riverstone. Legend Natural Gas, LP successfully acquired and developed producing properties in South Texas until it capitalized on its growing asset base with the sale of nearly all its properties to Chesapeake Energy in 2004. Legend Natural Gas, LP was formed by James A Winne III and Michael Becci, who continue on at Legend Natural Gas II, LP as President and CEO and Vice President and CFO respectively.

About Carlyle/Riverstone

Riverstone Holdings and The Carlyle Group are the co-general partners of Carlyle/Riverstone Global Energy and Power Fund I and Fund II. Riverstone, a New York based energy and power focused private equity firm founded in 2000, has approximately $1.5 billion under management. Riverstone conducts buyout and growth capital investments in the midstream, upstream, power, and oilfield service sectors of the energy industry. To date, the firm has committed approximately $875 million to 10 investments across each of these four sectors. The Carlyle Group is a global private equity firm with more than $25 billion under management. Carlyle invests in buyouts, venture capital, real estate and leveraged finance in North America, Europe and Asia. Since 1987, the firm has invested $13 billion of equity in 377 transactions. The Carlyle Group employs more than 550 people in 14 countries. Visit http://www.carlyle.com/ for additional information.

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