Monarch Closes Optigas Acquisition

Monarch Natural Gas Holdings has acquired certain natural gas gathering and treating assets in the Powder River Basin of Wyoming from Optigas and Ceritas Holdings. Financial details of the transaction were undisclosed. Monarch is a portfolio company of Metalmark Capital Partners.

PRESS RELEASE

Monarch Natural Gas Holdings, LLC (“Monarch”), today announced that it has consummated the purchase of certain natural gas gathering and treating assets in the Powder River Basin of Wyoming from Optigas, LLC and Ceritas Holdings, LP. The sale closed on June 29, 2012 for an undisclosed price. Monarch will step into the role of management and commercial development of these assets while continuing to employ Optigas’ remaining field staff based in Gillette Wyoming.

Monarch believes that, in spite of current relatively low natural gas prices, the Powder River Basin has significant growth potential. Noting that Monarch looks for investments with undervalued opportunities, Greg Sales, CEO of Monarch stated, “This is a prolific basin located in a dynamic region, and we believe this acquisition will be a strategic addition to our asset base. It increases Monarch’s presence in the Rockies where we have long operated and enjoyed substantial success. These assets will also provide Pro-Gas Services, LLC, an affiliate of Monarch, opportunities to extend its operations in the Rockies.” Pro-Gas provides natural gas field services, including fuel gas conditioners and compression service alternatives.

About Monarch Natural Gas Holdings, LLC

Monarch, a portfolio company of Metalmark Capital Partners, was formed in 2009. This is Monarch’s fourth acquisition, adding to its existing portfolio of natural gas gathering and processing assets. The principals of Monarch have worked together since the early 1990s in a number of natural gas gathering, processing and marketing companies in diverse regions of North America. Monarch has enjoyed a successful 20 year relationship with the same equity management team at Metalmark resulting in five previous investment platforms in the midstream sector, each yielding significant value for its stockholders. With corporate offices in Austin Texas, Dallas Texas and Denver Colorado, the acquisition of this system in the Powder River Basin of Wyoming adds to Monarch’s existing asset base located in the Marcellus Shale, of Pennsylvania, the Uintah Basin of Utah and within the Bossier play of central Texas.

About Metalmark Capital

Metalmark Capital is a leading private equity firm whose principals have a long track record of successful investing in targeted sectors, with particular focus and competence in energy and natural resources, industrials and healthcare. Metalmark Capital seeks to build long-term value through active and supportive partnerships with the companies and management teams in which they invest. Metalmark Capital is an investment center of Citi Capital Advisors.

About Ceritas Holdings, LP

Ceritas Holdings, LP is a Houston, TX based private energy company focused on making investments in natural gas and crude oil midstream infrastructure including gathering, processing, treating, compression and transportation. The management team of Ceritas has been together since 2003 on various investments and will continue to focus on other portfolio projects after this divestiture. Ceritas is backed by Energy Spectrum Partners IV LP, a Dallas, Texas based private equity firm that invests in companies focused on buying and developing midstream oil and gas assets.

SOURCE: Monarch Natural Gas Holdings, LLC