BROAD OAK ENERGY ESTABLISHES NEW EXPLORATION AND PRODUCTION VENTURE

Former Pioneer Natural Resources executive David Braddock leads new company supported by investor Warburg Pincus

DALLAS, Texas, November 7, 2006 – Broad Oak Energy, Inc. announced today that it has received an equity commitment of up to $150 million from company management and Warburg Pincus to pursue the acquisition, exploration and development of oil and gas leasehold interests in certain onshore regions of the United States.

Broad Oak Energy will explore for and develop oil and gas resources in selected proven hydrocarbon basins between the Texas Gulf Coast, northern Louisiana and New Mexico, a region recognized as one of the world’s most prolific hydrocarbon producing areas. Initially, Broad Oak Energy is concentrating on identified tight gas opportunities in southern Texas and in northern Louisiana, but over time will draw on the previous experience of its management team to target other unconventional opportunities where it believes significant value can be created through infill and repeat drilling.

Chairman and Chief Executive Officer David Braddock, a former executive with Pioneer Natural Resources, said: “I am delighted to be teaming with Warburg Pincus, a leader in the field of private equity investing in the energy sector. With the firm’s financial backing and expertise, I am confident that our management team is in the best possible position to create and realize value.”

Mr. Braddock is joined by President John Coss, formerly Vice President of Acquisitions at Pioneer Natural Resources and Exploration Manager at Conoco, and by Vice President of Operations Robert Skinner, who previously held the same position at Camden Resources. This executive team has been complemented by strong hires in the areas of geology and geophysics, land and engineering.

Commenting on the investment, Peter R. Kagan, a Warburg Pincus Managing Director, said: “Led by a senior management team with extensive technical experience in all of its targeted areas, Broad Oak Energy has the operational capability and financial foundation to pursue multiple exploration projects and developments simultaneously and to succeed in the competitive environment of onshore oil and gas exploration in the United States.” Mr. Kagan added: “And, this investment is entirely consistent with our practice of backing strong management teams to build companies of meaningful scale.”

About Broad Oak Energy:
Broad Oak Energy, Inc. is a privately held oil and gas exploration and production company with a focus on certain onshore regions of the United States. Formed with financial support from Warburg Pincus, Broad Oak Energy is led by a seasoned management and technical team with extensive relevant experience and a proven record of finding and developing hydrocarbon reserves. For additional information, please call (469) 522-7800 or visit www.broadoakenergy.com.

About Warburg Pincus:
Warburg Pincus has been a leading private equity investor since 1971. The firm has more than $10 billion under management and invests globally and at all stages of a company’s life-cycle across a range of sectors including: energy; technology, media and telecommunications; financial services; healthcare and life sciences; LBOs and special situations; and real estate. Since the late 1980s, the firm has invested approximately $1.5 billion in companies involved in oil and gas exploration and production, energy and power projects and oilfield and other services. Warburg Pincus has been the lead investor in several successful public and private energy companies, including: Newfield Exploration Co. (NYSE: NFX), Spinnaker Exploration, Inc. (NYSE: SKE, since acquired by Norsk Hydro ASA), Encore Acquisition Company (NYSE: EAC), Bill Barrett Corp. (NYSE: BBG), MEG Energy Corp. and Antero Resources Corp. For more information, please visit www.warburgpincus.com.

CONTACTS:
For Broad Oak Energy: David Braddock, (469) 522-7800
For Warburg Pincus: Julie Johnson Staples, (212) 878-9325, or Chuck Dohrenwend, Abernathy MacGregor, (212) 371-5999