Beowulf Energy and Natural Gas Partners Complete Acquisition of Generating Assets...

Beowulf Energy and Natural Gas Partners Complete Acquisition of Generating Assets from City of Vernon (California) in $288 Million Transaction

Acquired Portfolio Including 134 MW Malburg Generating Station and
22MW financial interest in the Hoover Dam Uprating Project

Transaction Completed Despite Challenging Financial Market
Conditions
NEW YORK--(Business Wire)--
Paul Prager, CEO of Beowulf Energy, and Natural Gas Partners
("NGP"), the leading investment franchise in the energy industry, have
closed the previously announced acquisition of generating assets from
the City of Vernon (California). The transaction, which is the third
power transaction completed by Beowulf and NGP, follows on the
acquisition of Bicent Holdings in July 2007 and the sale of Mountain
View wind farm to AES in March 2008. The Beowulf/NGP partnership has
completed approximately $1.1 billion of power acquisition and sale
transactions since being formed nine months ago.

The business being acquired includes the 134 MW Malburg Generating
Station and economic interests in the 22 MW Hoover Dam Uprating
Project. Following the sale of Mountain View last month, affiliates of
Bicent will now own and manage 692 MW of electric generating capacity
located in Montana, Colorado, California and Georgia. All of the
generating assets are contracted to investment grade power purchasers
with an average credit rating of A-.

Colorado Energy Management, a Bicent subsidiary which provides
design, construction, and operation and maintenance services to energy
partners, will manage the operations and maintenance of the Malburg
facility going forward.

Nazar Khan, Executive Vice President, Development and Acquisitions
of Bicent, stated, "We are delighted by the prospect of partnering
with the City of Vernon to provide low cost and reliable power to its
primarily commercial and industrial customers for many years to come.
The Malburg facility is a new, state of the art gas-fired combined
cycle power plant that is consistent with our strategy of owning and
operating best-in-class contracted power generating assets." Paul
Prager added, "Our ability to close this transaction despite the
challenging financing markets is a testament to the fundamental
quality of the portfolio as well as the extraordinary efforts of our
team, the City of Vernon, and our respective financial and legal
advisors."

Scott Gieselman, Managing Director of Natural Gas Partners, said,
"Paul Prager and the Beowulf team have continued to execute upon the
strategy of building a high quality, diversified, non regulated power
generation company. We continue to view this partnership as an
excellent complement to our traditional oil and gas investment
platform."

In addition to Mr. Prager, Chairman, CEO and President, the
officers of Bicent are Douglas Halliday, Executive Vice-President and
COO; Christopher Ryan, Executive Vice President and CFO; Nazar Khan,
Executive Vice President, Development and Acquisitions; and Martin
Wenzel, CEO of Colorado Energy Management. Prior to the acquisition of
Bicent, Mr. Prager and his team were instrumental in the successful
growth and subsequent sale of CES Energy Assets in a series of
transactions to Direct Energy, Energy Investors Fund and J- Power. Mr.
Prager also controls Trinity Power Ltd. ("Trinity"), which owns a 225
megawatt gas fired electricity generating facility located in the
Republic of Trinidad & Tobago. Trinity enjoys a 30 year contract to
sell electricity to T&TEC, the Trinidad state utility, and is subject
to a further guarantee by the Trinidad government (S&P/Moodys rating:
A-/Baa1).

Bank financing for the transaction was provided by Union Bank of
California and Lehman Brothers Inc. provided the initial debt
commitment to support the transaction.

Paul, Weiss, Rifkind, Wharton & Garrison LLP and Chadbourne &
Parke LLP served as legal counsel to Mr. Prager and NGP. Simpson
Thacher & Bartlett LLP served as counsel to the lenders.

Lehman Brothers Inc. is serving as financial advisor to the City
of Vernon. Bond Logistix LLC is serving as the City's municipal
financial advisor. Latham & Watkins LLP and KL Gates LLP are serving
as legal counsel to the City.

About Paul Prager

A graduate of the U.S. Naval Academy, Mr. Prager has extensive
experience in international shipping, commodity trading and power
development. In 1985, Mr. Prager joined Salomon Brothers Inc. as a
trader. In 1987, he founded and served as Managing Director of Davco
Oil, a crude oil and crude product physical and derivatives trader.
Since 1990, Mr. Prager has focused exclusively on the development,
operation and ownership of energy facilities and maritime assets. Mr.
Prager operates through his acquisition vehicle Beowulf Energy LLC.
Mr. Prager currently serves as a member of the Board of the US Naval
Academy Foundation.

About Natural Gas Partners

Founded in 1988, Natural Gas Partners manages over $7.2 billion in
a family of funds that invests private equity capital in oil and gas
production, midstream and oilfield service companies. The NGP platform
consists of a series of nine private equity funds with cumulative
commitments exceeding $6.9 billion since inception. The firm also
manages $350 million in two co-investment funds that invest in direct
oil and gas property interests alongside NGP portfolio companies.
Natural Gas Partners is an affiliate of NGP Energy Capital Management,
LLC, a $9.3 billion firm based in Irving, Texas that invests in all
sectors of the energy industry.

Natural Gas Partners may be contacted at (972) 432-1440 or
www.naturalgaspartners.com.

About Vernon

The City of Vernon is a chartered city of the State of California,
consisting of approximately 5.2 square miles located southeast of
downtown Los Angeles. The City is home to more than 1,800 mostly
industrial businesses, providing primarily skilled labor positions to
nearly 50,000 persons who live throughout the southeast region of Los
Angeles County. The City has owned its electric system since 1933 and
is the exclusive provider of electrical service to all property within
the City boundary. The City will use the proceeds to complete its
redemption of its auction rate bonds. This transaction will permit the
City to continue its highly successful industrial development program
to expand jobs in the region.

Beowulf Energy
Nazar Khan, 212-343-8353

Copyright Business Wire 2008