ArcLight to invest with CDX to expand North American coal bed methane production

Boston, MA, Nov. 14, 2002 — ArcLight Capital Partners, LLC, a Boston-based private equity firm, announced Thursday it has committed $100 million of equity to Lightning Gas, LLC, a limited liability company established by ArcLight in partnership with CDX Gas, LLC.

The commitment is expected to support over $500 mm of new investments in coal bed methane and other non-conventional natural gas projects in the United States and Canada.

Dallas-based CDX Gas is a North American land-based natural gas drilling and exploration company that has pioneered proprietary horizontal drilling technology. This technology allows CDX to extract methane from coal and shale beds spanning over 1,200 acres from a single well site, providing significant economic and environmental advantages.

CDX and affiliated companies provide turnkey production capabilities with their own coring rigs, drilling rig fleet, directional tools and services, laboratories and full spectrum operating teams. It operates in 14 states and two Canadian provinces.

The U.S. Department of Energy projects natural gas consumption to grow from 23 trillion cubic feet to over 30 trillion cubic feet by 2010. To meet this demand, new natural gas production must grow by 700 billion cubic feet per year.

“The massive build-out of the U.S. gas-fired power generation fleet is driving natural gas demand growth,” said Daniel Revers, ArcLight’s Managing Partner. “We believe coal bed methane represents an important new source of cost-effective natural gas for the power industry, and are excited about the opportunity to work with and invest with CDX as it becomes the leading producer of natural gas from coal bed methane in North America.”

About ArcLight Capital Partners

ArcLight Capital Partners manages the $950 million ArcLight Energy Partners Fund I, L.P. The Fund was established to capitalize on attractive investment opportunities in the rapidly evolving power, utility and energy industry. ArcLight’s investment in Lightning Gas represents its 15th fund investment.

Additional information on ArcLight is available at the company’s Web site, www.arclightcapital.com.


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