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November 1, 2010

KKR Natural Resources Closes Oil and Gas Investment in Southeast Texas

NEW YORK & HOUSTON, Nov 01, 2010 (BUSINESS WIRE) -- Kohlberg Kravis Roberts & Co (together with its affiliates, "KKR") announced today that KKR has acquired certain oil and gas assets in southeast Texas in two related acquisitions. The transactions, together valued at $40 million, are the first acquisitions by KKR Natural Resources, KKR's partnership with Premier Natural Resources ("Premier") formed to pursue investments in oil and gas properties in North America.

"We are both excited about this asset and about the many attractive opportunities that we continue to see to acquire oil and gas properties in North America," said Jonathan Smidt, a Director at KKR and a senior member of KKR's Energy and Infrastructure business.

The assets are largely comprised of long-lived natural gas wells producing out of the Wilcox formation in Southeast Texas.

KKR announced a partnership to acquire and develop oil and gas assets with Premier in February, 2010. Founded in June 2006 by former executives of Vintage Petroleum, Inc., PNR currently operates a portfolio of assets located in the Texas Gulf Coast and the Permian Basin and has experience operating assets in most of the major producing basins in the United States.

KKR has been investing in the energy sector for more than twenty years and today, KKR's global energy business spans the globe and covers the full energy supply chain. KKR's recent oil and gas transactions include Hilcorp Resources and East Resources as well as the formation of a partnership with RPM Energy.

About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global alternative asset manager with $54.4 billion in assets under management as of June 30, 2010. With over 600 people and 14 offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platforms. KKR is publicly traded on the New York Stock Exchange (NYSE: KKR). For additional information, please visit KKR's website at www.kkr.com.

About Premier

Premier Natural Resources was formed out of the acquisition and exploitation business plan implemented by Vintage Petroleum, Inc. Vintage was started in 1983 by Charles C. Stephenson and a team of executives that built the organization up to a 75000 BOEPD oil and gas company that owned and operated properties in the U.S., Argentina, Bolivia, Canada, Ecuador, Trinidad and Yemen before being merged with Occidental Petroleum, Inc in January, 2006 for a market evaluation of $4.1 billion. In North America, Vintage operated properties in all U.S. major producing states from Alabama to California and from Canada to the Federal Offshore Gulf of Mexico. For more information, visit www.premiernaturalresources.com.

SOURCE: KKR

KKR Media
Peter McKillop or Kristi Huller
+1-212-750-8300
media@kkr.com

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