Constellation Energy Partners Receives Favorable Outcome in Torch Arbitration

HOUSTON, July 23 /PRNewswire-FirstCall/ -- Constellation Energy Partners
LLC (NYSE: CEP) today announced it received a favorable ruling in the
arbitration proceeding relating to the net profits interest (NPI) held by
Torch Energy Royalty Trust in the majority of the company's assets in
Alabama's Black Warrior Basin. In issuing its final award, the arbitration
panel concluded that a price sharing arrangement and other pricing terms of a
terminated gas purchase contract continue to burden the NPI and will do so for
the life of the NPI. The price sharing arrangement and related pricing terms
have had the effect of keeping payments to the trust significantly lower than
if the NPI were calculated using the prevailing market price for production
from the applicable wells.
"We are extremely pleased with the ruling," said Stephen Brunner,
president and chief executive officer. "The ruling keeps in place important
pricing terms that impact the economics for a majority of our properties in
the Black Warrior Basin. Most importantly, this decision brings closure to
the dispute that is both contractually and financially important for our
company and provides further support for delivering cash flow stability and
future growth to our investors."
Constellation Energy Partners LLC (www.constellationenergypartners.com) is
a limited liability company focused on the acquisition, development and
production of oil and natural gas properties, as well as related midstream
assets.
SOURCE Constellation Energy Partners LLC

Media: Lawrence McDonnell, +1-410-470-7433; Investors: Tonya Cultice,
+1-410-470-5619, both of Constellation Energy Partners LLC