• A special-purpose affiliate of Los Angeles-based investment fund TCW plans to acquire membership units of CDX LLC, the parent company of CDX Gas LLC, Express Drilling Systems LLC, CDX Canada and CDX Gas International, for approximately $835 million in cash and other consideration. Closing was completed at the end of March. This transaction will capitalize CDX to permit it to develop its producing and nonproducing coalbed-methane and other unconventional gas interests in the U.S. and Canada. CDX currently holds acreage positions in every major North American resource play, a fleet of 17 drilling rigs and an in-house drilling company. UBS Investment Bank was advisor to TCW for this transaction. • Venoco Inc., Denver, has acquired TexCal Energy (LP) LLC, an independent E&P company with properties in Texas and California, for $456 million in cash. TexCal's proved reserves were 31.4 million BOE at Dec. 31. Current daily net production is approximately 5,200 BOE , implying a reserve-to-production ratio of 16.5 years. In the Sacramento Basin in California, Venoco and TexCal were the two most active drillers in 2005, drilling 21 and 18 wells, respectively. In 2005 TexCal increased its production in the basin from 4.2 million cu. ft. per day in the first quarter to 17.8 million in the fourth quarter. Its Sacramento Basin acreage is concentrated in the Grimes producing area, where Venoco has been aggressively adding to its core acreage position. TexCal also controlled interests in several key fields in Texas where its largest asset is the Hastings Field, a major field that has produced more than 600 million BOE during its life. TexCal operated more than 90% of its assets generally with high working interests. Upon closing, Venoco will have estimated pro forma total reserves of 79 million BOE, and a reserve base that is 63% oil, 52% onshore and 64% proved developed, with a proved-reserve-to-production ratio of 12.3 years based on December production. Venoco financed the acquisition through loans from Bank of Montreal, Credit Suisse and Lehman Brothers under its revolving credit facility and a new $350-million second-lien term loan. Credit Suisse and Lehman Brothers were financial advisors to Venoco. Citigroup Global Markets Inc., Merrill Lynch & Co. and Randall & Dewey, a division of Jefferies, were financial advisors to TexCal. • The Houston Exploration Co., Houston, (NYSE: THX) plans to sell substantially all of the Louisiana portion of its Gulf of Mexico assets to Merit Energy Co., Dallas, for $590 million. Merit was the winning bidder for all of THX's offshore Texas assets. Wachovia Securities is adviser to THX. Closing is expected May 31. At year-end 2005 the proved reserves associated with these assets were estimated at 186.1 billion cu. ft. of natural gas equivalent. The company will retain interests in 18 exploration leases in the Louisiana waters and expects to capture value from these blocks through some combination of drilling, farm-outs and sales. • Parallel LP, a subsidiary of Parallel Petroleum Corp., Midland, Texas, (Nasdaq: PLLL) has acquired an approximate 8.4% working and 6% net revenue interest in 16 wells in the Barnett Shale area of Fort Worth, Texas, for approximately $5.5 million. Parallel's working interest in the 16 wells has increased from approximately 28% to approximately 36.4%. Parallel financed the cash purchase through its existing senior revolving credit facility led by Citibank Texas NA and BNP Paribas. The additional interests represent an estimated 3.7 billion cu. ft. of gas, or 617,000 BOE, of proved oil and gas reserves, of which 56% are proved developed. The production acquired represents approximately 1.44 million net cu. ft. of gas, or 240 net BOE, per day as of March 14. • Exco Resources Inc., Dallas, (NYSE: XCO) has acquired a 50% interest in approximately 19,000 acres of leasehold interests and 38 producing wells in West Texas for $85.7 million from an undisclosed seller. Exco's interest in the proved reserves is approximately 33 billion cu. ft. of gas equivalent with an estimated additional 80 billion equivalent of probable and possible reserves. EXCO and the seller will conduct a joint-development program on the properties for the next several years with an estimated 70 wells to be drilled in 2006 and early 2007. • KCS Energy Inc., Houston, (NYSE: KCS) has entered an agreement to acquire a property in its core area of operations in north Louisiana. The acquisition will be effective as of April 1, and closing was on April 21. This purchase from an undisclosed seller for $26.2 million involves approximately 10,300 gross acres in Lincoln Parish, La. Proved reserves are internally estimated to be 11.2 billion cu. ft. equivalent, of which approximately 50% are proved developed. • Platinum Energy Resources Inc., New York, (OTCBB: PGRIU) plans to buy Tandem Energy Holdings Inc., Midland, Texas, (Pink Sheets: TDYH) for $102 million in cash. Tandem is an independent with approximately 21,000 acres under lease in the Gulf Coast region in Texas, the Permian Basin in Texas and New Mexico, and the Fort Worth Basin in Texas. Current production is more than 1,100 BOE per day. On Dec. 31, Tandem's estimated net proved reserves were 9.4 million BOE, approximately 61% crude oil, and 34% of its total reserves were proven developed producing. • Houston-based Northstar GOM LLC, a portfolio company of Natural Gas Partners, has closed the acquisition of Petrohawk Energy Corp.'s interests in the Gulf of Mexico for $52.5 million. The assets include 14 fields and 63 producing wells. Current production, which is still constrained by the effects of Hurricane Rita, is 10.5 million cu. ft. per day and total proved reserves, were estimated to be 26 billion cu. ft. on Jan. 1. This acquisition was funded, in part, by utilizing a portion of a new $200 million senior secured credit facility provided by BNP Paribas. • Teton Energy Corp., Denver, (Amex: TEC) plans to acquire a 25% working interest in approximately 45,000 net acres in the Goliath project of the Williston Basin in Williams County, N.D., from American Oil and Gas Inc. (Amex: AEZ). Teton will pay American approximately $2 million cash and approximately $3 million of American's 50% share for drilling and completion on the two planned wells. • Kinder Morgan CO2 Co., a subsidiary of Kinder Morgan Energy Partners LP, Houston, (NYSE: KMP) has acquired various properties from Journey Acquisition I LP and Journey 2000 LP in the Permian Basin of West Texas for $115 million. The properties produce approximately 850 net BOE per day and include some fields with enhanced oil recovery development potential near Kinder Morgan Energy's current CO2 operations. • Westside Energy Corp., Houston, (Amex: WHT) has acquired the Barnett Shale, Texas, partnership interests in EBS Oil and Gas Partners Production Co. LP and EBS Oil and Gas Partners Operating Co. LP for approximately $9.8 million. The purchase price is subject to post-closing adjustments based on future valuations of additional proved reserves from certain development wells. The acquisition included 9,837 gross acres, interests in 30 EBS-operated wells, estimated total proved reserves of 2.3 billion cu. ft. equivalent of gas (88% gas and 51% proved developed producing) and a one-sixth interest in a pipeline. KeyBanc Capital Markets, a division of McDonald Investments Inc., was Westside's advisor in connection with the EBS acquisition and a loan from GasRock Capital LLC. • Black Hills Corp., Rapid City, S.D., (NYSE: BKH) plans to acquire assets in the Piceance Basin of western Colorado from Koch Exploration Co. LLC for an undisclosed purchase price. The assets include approximately 40 billion cubic feet of proven gas reserves on leases covering more than 31,000 gross acres (18,000 net; 48% undeveloped). The acquisition also includes 63 producing wells, of which 58 are operated by Koch, and majority interests in midstream and gathering assets. In 2005, production from Koch's interests was approximately 700 million cu. ft. of gas equivalent. The acquisition will increase Black Hills' proven reserves approximately 24%.

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