Crusader Energy Group Inc.

Crusader Energy Group Inc., Oklahoma City, (Pink Sheets: CKGRQ) is offering certain oil and gas assets in the Whittenburg Basin in the Texas under Section 363 of the United States Bankruptcy Code. Crusader previously entered into an agreement with SandRidge Energy Inc. (NYSE: SD) in which SandRidge plans to purchase Crusader; however, the Whittenburg Basin assets are excluded from that transaction. The offered package involves the Bivins Ranch prospect consisting of an average 75% working interest in approximately 89,000 net contiguous acres in Oldham, Potter, Hartley and Moore counties in the Texas Panhandle. The majority of the acreage, 78,000 net acres, is under one lease set to expire on Jan. 1, 2010, with an option to extend up to two years for $1 million per year. The acreage is largely unexplored and targets the Canyon Granite Wash oil zone with numerous other multi-zone traps with productive potential between 4,000 and 9,000 feet. Gunn Oil Co., Cogent Exploration Ltd. Co. and Apollo Exploration LLC, collectively the Gunn Oil Group, have proposed to purchase the properties for $400,000 as the stalking horse bidder. Other bids must be at least $125,000 above that bid, or $525,000. While qualifying bids were due by the end of October, the auction date is still to be determined. Jefferies & Co. Inc. is financial advisor to Crusader in its Chapter 11 reorganization and is advising Crusader on this sale. Vinson & Elkins LLP is restructuring and reorganization counsel to Crusader. Contact Andy Rogers, 281-774-2000.