Riverstone Holdings LLC Invests in Three Rivers Natural Resource Holdings II LLC to Acquire Assets in the Permian Basin

Austin and New York (Aug. 13, 2012) – Riverstone Holdings LLC (“Riverstone”) announced today that it has invested in Three Rivers Natural Resource Holdings II LLC (“Three Rivers II”), a new private upstream oil and gas company based in Austin, Texas. With this support, Three Rivers II executed a definitive agreement to acquire certain assets located in the Permian Basin of West Texas from Meritage Energy Company, LLC (“Meritage”). These properties include 15,000 net acres with current production of approximately 1,900 barrels of oil equivalent per day located in Howard, Glasscock, Martin, Dawson and Upton Counties, Texas.

Three Rivers II will focus on oil and gas acquisition opportunities in the Permian Basin, where its management team has a proven track record of success. Most recently, the management team led Three Rivers Natural Resource Holdings LLC (“Three Rivers I”), which sold its assets to an affiliate of Concho Resources Inc. earlier this year for approximately $1.0 billion. The team has significant experience in managing exploration and production assets, both in the Permian Basin and other regions of the United States.

Mike Wichterich, CEO of Three Rivers II, said, “We are excited to continue our successful relationship with Riverstone and appreciate their confidence in our team and business plan.  The Meritage assets will provide a strong foundation for Three Rivers II as we continue to seek attractive new opportunities to expand our Permian position over time.”

Pierre Lapeyre and David Leuschen, Co-Founders of Riverstone, added, “We are delighted to be working with Mike and his team again. This investment exemplifies Riverstone’s strategy of re-partnering with proven management teams with deep, basin-focused operating expertise. We look forward to repeating the success we had with Three Rivers I.”

About Riverstone Holdings LLC
Founded in 2000, Riverstone Holdings LLC is an energy and power-focused private equity firm with over $22 billion of equity capital raised across seven investment funds and co-investments, including the world’s largest renewable energy fund. Riverstone conducts buyout and growth capital investments in the midstream, exploration & production, oilfield services, power and renewable sectors of the energy industry. With offices in New York, London and Houston, the firm has committed approximately $18.9 billion to 88 investments in North America, Latin America, Europe and Asia. For more information, visit www.riverstonellc.com.

About Meritage Energy Company, LLC
Founded in 2010, Meritage Energy Company, LLC is the third company built and sold over a 10 year period by Thomas J. Corley and Sam D. Winegrad, with the support and backing of various institutional and private investors.  The sale of this asset base follows its successful 2010 sale of Wolfberry assets in the Permian Basin.

Contact:
James David or Jeffrey Taufield
Kekst and Company
212-521-4800