KKR Natural Resources Acquires Barnett Shale Properties from Carrizo Oil & Gas for $104 Million

NEW YORK & HOUSTON–(BUSINESS WIRE)– Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, "KKR") announced today that KKR has entered into a definitive agreement to acquire certain Barnett Shale properties (the "Assets") from Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) for $104 million. The transaction, which is expected to close in mid-May, is being made through KKR Natural Resources ("KNR"), KKR's partnership with Premier Natural Resources ("Premier") to pursue investments in North American oil and gas properties. The transaction is the third investment made by KNR and, following the acquisition of certain properties from ConocoPhillips in January, the second investment made by KNR in the Barnett Shale.

Located in North Central Texas and producing out of the Barnett Shale formation, the Assets contain 122.4bcfe of total net proved reserves (based on a third party estimate) and comprise 75 gross (58.5 net) wells currently producing at a gross rate of 15.7mmcfe/d (8.3 mmcfe/d net).

"With their significant proved developed producing reserve component in a reservoir we know well through our current operations in the region, the assets are a great fit for our KKR Natural Resources platform. We are pleased to add these assets to our oil and gas portfolio and remain excited about the opportunity to grow the KNR platform through the acquisition of additional oil and gas properties in North America," said Jonathan Smidt, a Member at KKR and a senior member of KKR's Energy and Infrastructure business.

KKR announced its partnership with Premier in February, 2010. Founded in June 2006 by former executives of Vintage Petroleum, Inc., Premier currently operates a portfolio of assets located in the Barnett Shale, the Texas Gulf Coast and thePermian Basin and has experience operating assets in most of the major producing basins in the United States.

About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $61.0 billion in assets under management as of December 31, 2010. With 14 offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with investors through its client relationships and capital markets platforms. KKR is publicly traded on the New York Stock Exchange (NYSE: KKR). For additional information, please visit KKR's website at www.kkr.com.

About Premier

Premier Natural Resources was formed out of the acquisition and exploitation business plan  implemented by Vintage Petroleum, Inc. Vintage was started in 1983 by Charles C. Stephenson and  a team of executives that built the organization up to a 75000 BOEPD oil and gas company that  owned and operated properties in the U.S., Argentina, Bolivia, Canada, Ecuador, Trinidad and Yemen before being merged with Occidental Petroleum, Inc in January, 2006 for a market valuation of $4.1 billion. In North  America, Vintage operated properties in all U.S. major producing states   from Alabama to California and from Canada to the Federal Offshore Gulf of Mexico. For more   information, visit www.premiernaturalresources.com.

Source: Kohlberg Kravis Roberts & Co. L.P.