LLOG Exploration and Blackstone Energy Partners Announce the Formation of a Multi-Billion Dollar Offshore Gulf of Mexico

  LLOG Exploration and Blackstone Energy Partners Announce the Formation of a
  Multi-Billion Dollar Offshore Gulf of Mexico Strategic Partnership

Business Wire

COVINGTON, La. & NEW YORK -- November 13, 2012

LLOG Exploration Company L.L.C. (“LLOG” or the “Company”) and Blackstone
(NYSE: BX) today announced the formation of a long-term, strategic partnership
and have committed to invest over $1.2 billion to expand and accelerate LLOG’s
offshore operations in the Gulf of Mexico. The partnership will leverage the
combined operational and financial resources of LLOG and private equity funds
managed by Blackstone (collectively with their affiliates “Blackstone”) to
expedite development of LLOG’s four recent deepwater discoveries as well as
the exploration and appraisal of its extensive prospect inventory, which
includes over 110 offshore leases. In addition, the partnership will expand
LLOG’s asset base in the Gulf of Mexico through federal lease sale
participation, farm-ins and M&A activities, further building upon its position
as one of the largest private companies in the basin. This strategic
partnership is the largest private equity financing executed in the Gulf of
Mexico to date.

LLOG is one of the top 10 privately owned oil and gas companies in the U.S.
and one of the largest private operators in the Gulf of Mexico (“GOM”). LLOG
operates over 95% of its reserves and 86% of its prospects. During the last
two years, the Company has made four consecutive discoveries, including two
deepwater Gulf of Mexico discoveries to date during 2012, and over the last 10
years the Company has yielded an exploration drilling success rate of 70%.

Blackstone is one of the largest alternative asset managers in the world, with
more than $205 billion in assets under management and a leading energy sector
private equity investing franchise with an extensive, successful track record
of investing in partnership with exceptional management teams seeking to fully
capitalize on growth opportunities. Blackstone is currently investing from two
private equity funds which aggregate over $19.3 billion of committed capital
including Blackstone Energy Partners (“BEP”), its dedicated energy sector
fund.

Last year, LLOG commenced production from its Who Dat discovery, an asset
which is excluded from this partnership. The Who Dat Field, with estimated
reserves of 200 to 300 million barrels of oil equivalent, is one of the
largest discoveries in the GOM during the last several years. This field is
producing through the first privately owned floating production system in the
GOM, the Opti-Ex, which the Company acquired and brought online in less than
three years, a record setting pace for a development of its type. Importantly,
LLOG is also focused on maintaining a strong long-term track record in the
areas of health, safety and environment and was the most recent company to be
awarded the coveted Safe Operations and Reporting (SOAR) Award by the industry
regulatory agency.

Scott Gutterman, LLOG’s CEO, commented, “We are very excited to form this
unique, significant, and long-term strategic partnership with Blackstone. This
is the first time that we have joined forces with an equity partner on a
Company wide basis, and we cannot imagine a more suitable partner to mark this
significant inflection point for LLOG. This transaction is indicative of the
many exciting assets and opportunities we have at LLOG and will enable us to
capture opportunities that we could not otherwise pursue. We believe the Gulf
of Mexico deepwater is one of the most attractive oil plays in the world, and
we expect to continue to be a long-term, significant player in the basin. I
believe that with our deep technical and operations team, experience and
assets in the GOM combined with Blackstone’s team, extensive capital
resources, oil and gas expertise and industry resources, we will be able to
take our business, activity levels and assets to the next level. We are very
excited about the risk profile and depth of our prospect inventory, the
associated resource potential and the operational, capital and human resources
we will bring to safely develop and expand our asset base for our
partnership.”

Angelo Acconcia, the Managing Director who leads Blackstone Energy Partners’
global oil and gas investing practice, commented, “We are very excited to form
this long-term partnership with LLOG to accelerate the growth and development
of LLOG’s attractive and extensive portfolio of discoveries and prospects.
LLOG has a very talented and experienced technical and operations team, one of
the best we have seen in the GOM and the Company has an incredible track
record of exploration and development success, operational excellence and
strong safety and environmental practices. To complement this, LLOG is a
highly efficient deepwater operator, with the history and ability to
accelerate development, minimizing the timeframe to first production and
significantly increasing project returns.” David Foley, Chief Executive
Officer of Blackstone Energy Partners, stated, “We evaluate many potential
investments in the energy sector but choose only a small number each year to
pursue that we believe represent a combination of the most exceptional
management teams with unique and large-scale opportunities to create value;
LLOG is a great example of this.”

About LLOG

LLOG Exploration is a leading privately-owned E&P company in the Gulf of
Mexico and one of the top 10 private oil and gas companies in the United
States. LLOG is also one of the top 20 companies overall, both public and
private, in the Gulf of Mexico. LLOG has a high quality, balanced portfolio of
producing properties, development projects and exploration prospects. With a
dedicated and talented staff of professionals, LLOG has maintained a 70%
success rate on exploration wells over the last decade. LLOG has a proven
track record of safe and efficient operations and was the recipient of the
2008 SOAR award. Company’s website: www.llog.com.

About Blackstone

Blackstone is one of the largest alternative asset managers in the world, with
more than $205 billion in assets under management and is a leading global
private equity firm and energy private equity franchise. Since its inception
in 1985, Blackstone has invested over $42 billion of equity in 172
transactions across the globe. Blackstone is currently investing out of
Blackstone Capital Partners VI (“BCP VI”), a $16.7 billion diversified general
purpose private equity fund and Blackstone Energy Partners (“BEP”), a $2.5
billion energy-focused private equity fund. Blackstone’s private equity
investments in the energy sector are funded jointly by BEP and BCP VI, which
together represent over $5 billion of equity capital allocated to energy.

Over the last decade, Blackstone has built a leading energy sector private
equity investing franchise with an extensive, successful track record of
investing in partnership with exceptional management teams seeking to
capitalize on their growth opportunities and realize the full potential of
their assets. Led by David Foley, the Chief Executive Officer of Blackstone
Energy Partners, this dedicated team of professionals has committed and
invested more than $7.5 billion of equity in 25 energy transactions, across a
broad range of geographies and throughout the energy value-chain: upstream,
midstream, services & equipment, downstream and power. Oil & gas companies
represent a significant share of Blackstone’s capital commitments to the
energy sector and remain a key focus area for new investments. Blackstone’s
current portfolio of oil and gas investments include: Alta Energy, GeoSouthern
Energy Corporation, Kosmos Energy, OSUM Oil Sands, and Royal Resources.
Further information is available at www.blackstone.com.

Contact:

LLOG
Media:
Randy Pick, +1-985-801-4300
randyp@llog.com
or
Blackstone
Media:
Peter Rose, +1-212-583-5871
rose@blackstone.com
 
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