2010-07-21-2010-07-21-2010-07-21

Bought approximately 46,000 net acres in the Haynesville/Bossier & associated 100-mile pipeline, with 61 Bcfe of proven reserves and 13.2 MMcfe of production.

An undisclosed buyer plans to acquire Boulder, Colorado-based E&P company Ellora Energy Inc. for $695 million, of which $35 million will be placed in escrow.

Founded in 1995, Ellora has oil and gas assets primarily in the James lime and Haynesville and Bossier shale plays in East Texas and Louisiana.

The assets comprise approximately 46,000 net acres in the Haynesville and Bossier plays and an associated 100-mile pipeline system. Proved reserves were 61 billion cubic feet of gas equivalent at year-end 2009, excluding properties in Kansas and Colorado, which were sold in February 2010 (99% gas and 48% proved developed). Production was 13.2 million cubic feet equivalent per day, and estimated net working capital was approximately $125 million as of June 30. Ellora has no debt.

In December 2009, the company retained Bank of America Merrill Lynch to seek strategic alternatives including a sale or merger of the company or the sale of all or a substantial part of its assets.

Ellora is backed by Yorktown Energy Partners. Mayer Brown LLP is advisor to Ellora. Tudor, Pickering, Holt & Co. Securities Inc. provided a fairness opinion.