Laredo Petroleum Forms in Tulsa

Laredo Petroleum, a newly formed independent oil and gas company, announced today that Warburg Pincus, the global private equity firm, and company management have agreed to a line-of-equity financing for up to $300 million.

Funding from this line-of-equity, which may be increased to $500 million subject to the agreement of the investors, will be provided over time as needed by the company to pursue the acquisition, exploration and development of oil and gas properties in the Mid-Continent region of the United States.

Laredo Petroleum will then seek to add value to these properties by deploying its significant operating experience and exploration skills to expand reserves and production through new drilling programs. Shortly following its formation, Laredo Petroleum completed its first such investment, a $75 million acquisition of assets from Austin-based Jones Energy Ltd. In addition to the equity funding provided by Warburg Pincus, Laredo has arranged a $300 million revolving credit facility with commercial banks.

Laredo Petroleum is led by Randy Foutch, a highly successful entrepreneur who previously created three notable Mid-Continent-focused exploration and production companies, each of increasing scale. Mr. Foutch is joined by experienced senior industry executive Jerry Schuyler, who brings more than
30 years of experience at ARCO Oil & Gas, Dominion Exploration and Production and St. Mary Land & Exploration, as well as by Pat Curth, Oran Hall, Mark Womble and several other of Mr. Foutch’s former colleagues from previous Warburg Pincus portfolio companies Lariat Petroleum and Latigo Petroleum.

Lariat was founded in 1997 and sold in 2001 to Newfield Exploration Company for approximately $333 million, and Latigo was formed in 2002 and sold in 2006 to Pogo Producing Company for approximately $750 million.

Laredo Petroleum’s first completed transaction, the acquisition of 130 producing properties located primarily in Hansford County, Texas, has an effective date of March 1, 2007. In addition to exploiting the existing production, Laredo Petroleum will implement new drilling programs to target undeveloped opportunities.

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