2011-06-15-2011-05-27-2011-07-05

Bought 100% WI in 16 wells and 47% WI in 44 wells on 5,000 net acres in Atascosa and Karnes counties, TX, gaining 3.8 MMcfe/d.

Houston-based Momentum Oil & Gas LLC, an investment portfolio company of Kayne Anderson Energy Funds, has closed the acquisition of certain South Texas oil and gas properties in Fashing Field from Newfield Exploration Co., Houston, (NYSE: NFX) for an undisclosed amount.

The deal includes 100% working interest in 16 wells and 47% interest in 44 wells on approximately 5,000 net acres in Atascosa and Karnes counties, making Momentum the largest asset holder in the field. Momentum is acquiring all of Newfield's interests below the top of the Georgetown formation at approximately 9,700 feet, including the Edwards, Georgetown, and Pearsall shale formations.

Net production is approximately 3.8 million cubic feet of gas equivalent per day.

Fashing Field is the largest Edwards gas discovery in Texas with more than 1.2 trillion cubic feet of natural gas produced since inception in 1957.

Momentum plans to fund the acquisition with a combination of equity from Kayne Anderson Energy Funds and the management team and debt from Momentum's credit agreement with BNPParibas, Union Bank and Bank of Texas.

Momentum president Loren Long says, "Fashing Field is the crown jewel of the Edwards play in South Texas. There is a significant amount of hydrocarbons remaining, even beyond the proved reserves. It has been 15 years since the last well was drilled and completed in the lower Edwards. There have been numerous enhancements in drilling and completion techniques since that time, and we're putting together the right combination of asset, team and technology to create value."

Kayne Anderson vice president Greg Davis says, "This is a great start to Momentum's acquisition strategy. These assets provide Momentum with a stable base of long-life gas production and a solid inventory of development projects."