Hilcorp Affiliate Finalizes San Juan Basin Assets Acquisition from ConocoPhillips

Hilcorp San Juan, L.P. announced today the closing of its acquisition of
the San Juan Basin assets from ConocoPhillips. The 1.3 million net acres
purchase instantly places Hilcorp Energy amongst the top producers in
the San Juan Basin. The company believes the assets are teeming with
opportunity to profitably grow production.

“With the acquisition now complete, Hilcorp can start doing the
technical work required to increase production in New Mexico and
Colorado, just as we’ve done in other areas of the country,” said Jason
Rebrook, President and Chief Development Officer. “Throughout this
entire process, we’ve identified significant potential remaining in the
base assets as well as in the Mancos Shale.”

Hilcorp has a long track record of developing assets acquired from major
oil and gas producers. While other companies have reduced their exposure
to traditional, conventional assets, Hilcorp has become a leader in
extending and improving the production lives of these assets through
expertise, innovation and efficient operations. This entry into the San
Juan Basin is a natural extension of Hilcorp’s business model.

“Hilcorp sees decades of future production and development in the basin.
We are excited for the opportunity to enhance oil and natural gas
production in the Four Corners Region, and we expect to become
responsible members of the local community by boosting economic activity
and developing strong, long-lasting partnerships,” said Greg Lalicker,
President and Chief Operations Officer.

The assets purchased by Hilcorp currently produce ~120,000 BOED with a
decline rate of 7% annually. Hilcorp’s immediate goal will be to take
over operations from ConocoPhillips in a safe and environmentally
responsible manner. Concurrently, efforts will begin to stabilize the
production from these assets. Workover rigs will be deployed to the San
Juan Basin in the near-term to begin working on existing wells.

Hilcorp San Juan, L.P. is a partnership between Hilcorp Energy Company
and The Carlyle Group.

About Hilcorp

Hilcorp, founded in 1989, is one of the largest privately held
independent oil and natural gas exploration and production companies in
the United States. Hilcorp is consistently ranked as one of the top
places to work in America by multiple regional and national
publications. Headquartered in Houston, TX, with over 1,500 employees,
Hilcorp has operations across the United States including the Gulf Coast
of Texas and Louisiana, Wyoming, Northeast U.S. and both the Cook Inlet
and North Slope of Alaska.

About Carlyle

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager
with $162 billion of assets under management across 287 investment
vehicles. Carlyle’s purpose is to invest wisely and create value on
behalf of its investors. The Carlyle Group employs more than 1,550
people in 31 offices across six continents.

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