Avista Capital Partners Invests $55 Million in Laredo Energy

NEW YORK, Oct. 23 /PRNewswire/ -- Avista Capital Partners, a leading private
equity firm that invests primarily in growth-oriented energy, media, and
healthcare companies, today announced it has committed $55 million to Laredo
Energy IV, LP to fund the acquisition, exploration, and development of natural
gas resources in the prolific Lobo Trend in South Texas.

Laredo IV, which is led by president and co-founder Glenn D. Hart, was formed
in August 2006 through a $70 million commitment by EnCap Investments, L.P. and
individual investors. Avista, alongside Laredo's existing shareholders,
participated in a new commitment to Laredo IV of $135 million, which has been
used to fund an acquisition of properties in South Texas and for additional
development capital.

Steven Webster, Co-Managing Partner of Avista and Director of Laredo, said,
"We know Glenn and his team at Laredo very well, and look forward to
supporting their focused strategy of developing proven reserves in a region
characterized by high return, low-risk opportunities with high drilling
success rates. Long-term domestic gas fundamentals are favorable, and given
management's outstanding track record - which includes an 84% success rate on
158 wells drilled in the Lobo Trend in the last 10 years - we are confident in
their ability to continue to execute."

Mr. Hart said, "We are pleased to be working again with the Avista team, which
was one of our major investors when we recapitalized Michael Petroleum in
2000. Since the sale of Michael in 2001, we have continued, as Laredo Energy,
our strategy of developing Lobo Trend properties. We are pleased with our
progress in building a solid lease position and growing reserve base in Laredo
IV."

About Avista Capital Partners
Avista Capital Partners is a leading private equity firm with offices in New
York, NY and Houston, TX. Founded in 2005, Avista's strategy is to make
controlling or influential minority investments primarily in growth-oriented
media, healthcare and energy companies. Through its team of seasoned
investment professionals and industry experts, Avista seeks to partner with
exceptional management teams to invest in and add value to well-positioned
businesses. For more information, visit http://www.avistacap.com.

Contact
Diana Postemsky, Kekst and Company, 212-521-4805

SOURCE Avista Capital Partners

Diana Postemsky of Kekst and Company, +1-212-521-4805, for Avista Capital
Partners