Caballo Energy,  LLC  (Caballo)  announced  today  that  the company  is building a new cryogenic processing plant to serve expanding natural gas production in the liquids‐rich Mississippi Lime and Cana Woodford Shale plays. Known as the Carmen Gas Processing Plant, the new facility will have the capacity to process 60 million cubic feet of natural gas per day (MMcf/d), bringing Caballo’s processing capacity in the region to approximately 100 MMcf/d. 

The Carmen plant will be in service by the end of the first quarter of 2013. The plant is strategically located near Carmen, Oklahoma, at the intersection of the liquids-­‐rich Mississippi Lime and Cana Woodford Shale plays. The 160‐acre site allows for the construction of a second cryogenic processing plant at the same location.   

The new Carmen plant and Caballo’s existing Eagle Chief plant serve the company’s Eagle Chief system, which includes more than 600 miles of natural gas gathering pipelines and compression facilities located in Alfalfa, Blaine, Garfield, Major and Woods counties. Caballo delivers processed gas to the ONEOK Gas Transportation and Panhandle Eastern Pipe Line. Natural gas liquids are delivered to the ONEOK NGL Pipeline.  The  Eagle  Chief  system  also  includes  salt  water disposal  and  crude  oil  gathering  systems. Caballo acquired the Eagle Chief system in December 2011.  

Caballo also announced the addition of three new executives who will play key leadership roles as the company continues to expand. Glenn Powell has joined Caballo as chief commercial officer. Mr. Powell previously  served  as  the  chief  operating  officer  Atlas  Pipeline  Partners,  L.P.  (NYSE:  APL)  and  has significant experience in commercial development. Wayne Bennett has also joined Caballo as director of engineering operations. Prior to joining Caballo, Mr. Bennett served as senior engineering technician for ScissorTail Energy, LLC (now Copano Energy, LLC, NASDAQ: CPNO) and as area manager for the Elk City subsidiary  of  Atlas  Pipeline  Partners,  L.P.  Mr.  Bennett  brings  Caballo  extensive  experience  in  the construction   and  operation   of  natural   gas processing   plants  and  pipeline   systems.   Finally,   Rich McCullough has joined Caballo Energy as vice president of finance and accounting. Mr. McCullough is a certified public accountant and most recently served as the manager of financial reporting for Alliance Resource Partners, L.P. (NASDAQ: ARLP) and an audit manager for Grant Thornton LLP. Mr. McCullough has important experience  in  the  midstream  natural  gas  business  and  expertise  in  various  technical accounting matters including business combinations and derivatives.     

“The  construction  of  the  Carmen  plant  is  a  first  but  very  important  step  in  our expansion  of  the  Eagle Chief  system,”  said  Caballo  President  and  CEO  Bob  Firth. “The  liquids-­‐rich  gas  found in  the  Mississippi Lime  and  Cana  Woodford  shale  formations  provides  an  attractive  return  for  producers, even  under current pricing conditions.   We believe this area has significant potential for future growth and we are excited to be in a position to provide the processing capabilities our customers need. Our plans also call for the development of an additional cryogenic processing plant next to the Carmen plant. An additional plant  could  be  up  and  running  rapidly  depending  upon  market conditions  and  demand,  further enhancing our ability to meet the needs of our customers.

Additionally, the hiring of these three highly experienced executives -­‐ Glenn  Powell, Wayne  Bennett  and  Rich  McCullough -­‐ enhances  an already strong management team and opens up new business avenues.”

Tulsa based Caballo Energy is a midstream services company formed to acquire, develop and manage natural gas gathering, compression, treating, processing and marketing assets.

The  members of  Caballo’s senior  management   team  collectively   have  more  than  100 years  of experience in natural gas gathering and processing. Caballo’s business philosophy is distinguished by an overriding commitment to safety, the development of collaborative relationships across the midstream value chain, a focus on highly efficient operations and rapid response to customer needs. Caballo is supported with a private equity commitment from EnCap Flatrock Midstream of San Antonio. Visit www.CaballoEnergy.com  for more information.

Based in San Antonio, EnCap Flatrock Midstream provides value-­‐added private equity capital to proven management  teams  focusing  on  midstream  energy  infrastructure   opportunities throughout  North America. EnCap Flatrock is led by managing partners William D. Waldrip, William R. Lemmons Jr. and Dennis F. Jaggi. With more than 100 years of midstream experience, the principals at EnCap Flatrock Midstream manage  investment  commitments  of nearly  $3 billion from  a broad  group  of prestigious institutional investors.  Visit www.efmidstream.com for more information.