Selected Realized Investments

Cordillera Energy Partners
Cordillera Energy Partners was formed in February 2000 to focus on the acquisition and development of proved reserves, principally in the Rocky Mountain and Mid-Continent regions.  The founder and CEO of Cordillera was an experienced industry executive who had been instrumental in the consummation of over $1 billion in acquisition and divestiture transactions while at HS Resources and Apache Corporation (NYSE: APA).

Utilizing a combination of bank debt and private equity, Cordillera pursued an aggressive growth strategy, closing six acquisition transactions between February 2001 and December 2002.  In the process, the Company amassed over 200 Bcfe of proved reserves at an attractive price of less than $0.90/mcf.  In 2002, the Company initiated an active development program which substantially increased production volumes and cash flow.

In October 2003, Cordillera was sold to Patina Oil & Gas Corporation for cash and warrants.

EnCap is currently partnered with the same management team through Cordillera Energy Partners II.

Escondido Resources

Since formation in December 2004, Escondido successfully acquired over 80,000 net acres located in the Maverick Basin in South Texas.  Within this acreage position, Escondido drilled over 150 natural gas wells targeting the shallow Escondido and Olmos sands with a success rate of greater than 95%.

In September 2007, Escondido entered into a definitive agreement to sell its oil and gas assets to Swift Energy Company (NYSE: SFY).

The Escondido management team has requested a new commitment from EnCap to support their next venture and EnCap and management are in the process of forming Escondido II.

Laramie Energy
Laramie Energy was a Denver-based, independent oil and gas company formed by former executives of Forest Oil Corporation (NYSE: FST) and Mesa-Hydrocarbons, Inc.  Laramie was focused on acquiring and exploiting unconventional natural gas plays in the Rocky Mountains, primarily in the Piceance Basin of Colorado.

From its inception in May 2004 to its exit in May 2007, Laramie acquired a total of 66,000 gross / 58,000 net acres in the Piceance Basin through small acquisitions and Federal Lease Sales.  These acquisitions were primarily acreage acquisitions without PDP reserves.

Laramie was able to create significant value on this acreage through a successful drilling effort that resulted in over 380 Bcfe of Total Proved reserves at the time of its sale.  Over the three-year period, the Company successfully drilled over 200 wells in the Piceance Basin.  The Company’s developmental success also added significant Probable upside resulting in 2.2 Tcfe of total net (2P) reserves at exit.

In May 2007, Laramie sold to Plains Exploration & Production Company (NYSE: PXP).

EnCap is currently partnered with the same management team through Laramie Energy II.
www.laramie-energy.com

Laredo Energy I / Laredo Energy II / Laredo Energy III
Laredo Energy is a Houston-based independent oil & gas acquisition and development company with operations in the Lobo Trend in South Texas.  While partnered with EnCap, the Laredo team has successfully developed and realized assets in this area several times.

Laredo I – In December 2001, EnCap and management formed Laredo to finance the acquisition and development of properties in the Lobo Trend.  Laredo acquired and developed acreage and in the Lobo Trend and, after executing a successful development program, was acquired by Chesapeake Energy (NYSE: CHK) in October 2003.
 
Laredo II – Subsequent to the sale of Laredo I in October 2003, EnCap and Laredo management formed Laredo II.  In December 2003, Laredo II acquired producing properties with development upside from ChevronTexaco.  Like its predecessor, Laredo II demonstrated significant development upside and later sold to Chesapeake Energy in March 2005.

Laredo III – Laredo III experienced similar success in the Lobo Trend, ultimately increasing production to over 16 Mmcfe per day before exiting to El Paso Corporation (NYSE: EP) in January 2007.

EnCap is currently partnered with the core members of Laredo’s management and technical team through Laredo IV.
www.laredoenergy.com

Medicine Bow Energy Corporation

Utilizing a combination of bank debt and private equity, Medicine Bow pursued an aggressive growth strategy, closing three transactions totaling over $200 million.

In July 2005, Medicine Bow was acquired by El Paso Corporation (NYSE: EP).

Plantation Petroleum Holdings

Plantation I - In July 2002, EnCap invested equity capital to facilitate Plantation’s acquisition of Maynard Oil Company, a publicly-held company focused in the Permian Basin.  The Plantation management team implemented a successful development plan and sold to Forest Oil Corporation (NYSE: FST) in December 2003.

Plantation II - Subsequent to the sale of Plantation I to Forest Oil, management again partnered with EnCap to form Plantation II in November 2003.  Using a combination of bank debt and equity, Plantation II closed a highly attractive acquisition in Southeast New Mexico and created additional value by increasing production at a minimal cost.  In June 2005, Plantation II sold to Range Resources Corporation (NYSE: RRC).

Plantation III - In December 2005, management partnered with EnCap for the third time in Plantation III.  Again, management successfully closed an attractive acquisition in the Permian Basin and successfully implemented a drilling and production enhancement program.  In July 2007, Plantation III entered into a definitive agreement to sell its assets to EV Energy Partners, L.P. (Nasdaq: EVEP).

EnCap is currently partnered with the Plantation management team in Plantation IV, formed in August 2007.

In developing the NEBU gas field, the previous operator had increased capital expenditures for high cost compression equipment, which caused a decrease in distributions to the royalty trust unit holders.  As a result, San Juan Partners was able to complete the acquisition of BRU at an artificially depressed price.

San Juan Partners successfully tendered for the outstanding units of BRU and forced its liquidation in November 1998 in a complex and relatively unprecedented transaction.

Subsequently, San Juan Partners bought in the working interest in NEBU from Burlington Resources.  This allowed San Juan Partners to benefit from the premium in valuation available from reassembling the related working interest and royalty interest.

In January 1999, the assets of San Juan Partners were sold to Dominion Resources (NYSE: D).

EnCap is currently partnered with the core members of San Juan Partners’ management team through Paloma Barnett.

Stroud Energy
Stroud Energy, was a Fort Worth-based, independent oil and gas company originally established in Wichita, Kansas in 1985.  However, the Company relocated its headquarters to Fort Worth in 2000 and began focusing in the Austin Chalk trend of Central Texas.  At the time of EnCap’s investment, Stroud had recently undergone an extensive transformation, having replaced its senior management team, restructured its balance sheet and redefined its strategy.  In addition to continuing to selectively drill development wells in the Austin Chalk, the new management team intended to diversify its asset base through acquisitions in other geographic areas, specifically focusing on the Barnett Shale in North Central Texas, where Stroud’s new CEO had extensive experience and a broad base of industry contacts.

EnCap’s equity infusion substantially de-levered the Company providing Stroud’s new management team with growth capital to pursue their acquisition strategy.  The Company expanded its position in the Barnett Shale and East Texas through a number of acquisitions and farmout agreements.  As a result of successful drilling in these two areas, as well as the Austin Chalk, Stroud increased its net daily production and doubled its base of proved reserves.

Due to a receptive public market and a compelling valuation, Stroud engaged Raymond James in early 2005 to take the Company public through a 144a offering.  In September 2005, Stroud successfully completed the 144A offering and in June 2006, Stroud sold to Range Resources (NYSE: RRC).

EnCap is currently partnered with the core members of Stroud’s management team through Grenadier Energy Partners.

PetroHawk Energy Corporation
Petrohawk Energy Corporation (NYSE: HK) is a publicly-traded E&P company based in Houston.  The Company was formed in May 2003 by the former founder and CEO of 3TEC Energy, a successful EnCap Fund III investment.  The Company has aggressively pursued its acquire and exploit growth strategy and has evolved from a start-up to a substantial mid-cap independent.

In May 2004, Petrohawk acquired a controlling interest in Beta Oil & Gas (“Beta”), a small publicly-traded oil and gas company based in Tulsa, with the intention of utilizing Beta as a platform to raise public equity for future growth.  Subsequent to the transaction, Beta was re-named Petrohawk.

In January 2005, Petrohawk completed a Reg-D offering to supplement bank financing in consummating the acquisition of Wynn Crosby Energy, Inc.  Following this offering, EnCap sold enough of its common stock in Petrohawk to recoup its initial investment.

In July 2005, Petrohawk finalized a merger with Mission Resources Corporation, a publicly traded E&P company with assets in the Permian Basin and Gulf Coast, with the combined Company having over $1 billion of oil and gas assets.  Subsequent to this merger, EnCap began to strategically liquidate its remaining ownership in the Company until the last of the securities were sold in February 2006.

In July 2006, Petrohawk completed a merger with KCS Energy, creating a combined Company with estimated proved reserves of approximately 1 Tcfe.
www.petrohawk.com

Matrix Oil & Gas
Matrix Oil & Gas was a privately held, independent oil and gas company based in Covington, Louisiana.  Matrix engaged in the acquisition, exploitation, development and production of oil and gas properties primarily in the shallow waters of the offshore Gulf of Mexico.

In August 1998, EnCap made an initial investment in the Matrix Northstar Limited Partnership, a vehicle formed to acquire and develop the West Delta 27 Field.  EnCap subsequently invested additional capital to fund development of the property, the recapitalization of the Company and the purchase of several limited partnerships in which the Company was the general partner.

After acquiring West Delta 27 in August 1998, Matrix aggressively converted its proved non-producing and undeveloped reserves to producing status through workovers and drilling.  As a result, the Company’s production rate increased from 25 mmcf/d at the time of the initial investment to 44 mmcf/d prior to exit.

In September 2000, Matrix acquired an offshore field from Unocal, adding to its asset base of over 15 offshore fields. In July 2001, Matrix was acquired by Denbury Resources (NYSE: DNR).

NCX Company
NCX is a privately held independent oil and gas company based in Houston engaged in the acquisition, development and production of oil and gas properties in the shelf area of the offshore Gulf of Mexico.  In November 2001, EnCap made its initial investment in NCX in order to acquire oil and gas properties in the Gulf of Mexico.  NCX successfully executed a development plan and sold the majority of its assets to Summit Gulf Venture (Sumitomo) in February 2005.

EnCap is currently partnered with the NCX management team in NCX II, through which management continues to pursue Gulf of Mexico shelf opportunities.

Ovation Energy
Headquartered in Fort Worth, Texas, Ovation Energy is an independent oil and gas company focused in the Anadarko, Arkoma and East Texas basins.  Ovation’s management team is comprised of a group of former Encore Acquisition Company and XTO Energy management team members who have worked these basins for over 15 years each.  Ovation management successfully created value for investors through Ovation I and is currently partnered with EnCap through Ovation II.

Over a two and a half year period, Ovation I closed three producing property acquisitions and subsequent exploitation work including the drilling and completion of nine wells.  In October 2004, Ovation I’s oil & gas properties were sold to Comstock Resources (NYSE: CRK).