Legend Natural Gas, LP Acquires South Texas Gas Reserves from Wagner & Brown, Ltd.

Houston, TX - Legend Natural Gas, LP of Houston, Texas, today announced the closing of its acquisition of producing natural gas properties located in South Texas from Wagner & Brown, Ltd. of Midland, Texas. Purchase price for the transaction was $32 million.

Two fields were acquired by Legend in this acquisition: the En Seguido Field located in Zapata County, Texas; and the Wadsworth Field located in Matagorda County, Texas. Current net production from the properties is approximately 10 million cubic feet equivalent per day, and is 94% gas. Total leasehold acreage is approximately 5,200 gross acres.

This acquisition builds on the Company’s previously announced acquisition of properties from Anadarko Petroleum/RME Petroleum, which closed in April, 2002 and consisted principally of properties located in Zapata County. Legend intends to continue to increase its presence in south Texas and the upper Texas Gulf Coast and will continue to look for opportunities in these focus areas. Please contact Bill Deupree at Legend at 281-675-8300 to discuss any opportunities in more detail.

Privately-held Legend Natural Gas, LP is a Delaware Limited Partnership formed in September, 2001 for the purpose of acquiring and developing natural gas and oil reserves, principally in south Texas. Private equity for the Partnership is being provided by the Carlyle/Riverstone Energy and Power Funds, a venture between The Carlyle Group (Washington D.C.) and Riverstone Holdings, LLC (New York).

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