Antero Resources Announce $1 Billion Line-of-Equity Financing

Veteran management team led by Paul Rady and Glen Warren to continue to

focus on development of non-conventional resource plays in the

Mid-Continent and Rockies

Aug 15, 2007, 01:00 ET from Antero Resources Corporation

    DENVER, Aug. 15 /PRNewswire/ -- Antero Resources Corporation and its
 affiliates ("Antero"), a Denver-based privately owned oil and gas
 exploration and production group, announced today that it has secured a $1
 billion line- of-equity funding program led by Warburg Pincus, the global
 private equity firm. Joining Warburg Pincus are Yorktown Energy Partners
 VII, LP, Lehman Brothers Merchant Banking Group and the Antero management
     Antero has a long history of partnership with the current investor
 group. Paul M. Rady, Chairman and CEO, and Glen C. Warren, Jr., President
 and CFO, formed Antero Resources Corporation in 2002 and funded the company
 in early 2003 with the current investor group. The original Antero
 Resources Corporation was focused on the Barnett Shale, where in less than
 three years it grew to become the second largest producer and second most
 active operator at the time of its sale in April 2005 to XTO Energy Inc.
 for over $1 billion in cash and stock (including assumption of debt). Since
 this sale, the current Antero group has been focused on developing its
 properties in the Arkoma Basin of Oklahoma and the Piceance Basin of
     Antero currently operates 11 drilling rigs and has gross operated
 production of 34 MMcfd in the Arkoma Basin Woodford Shale play and 20 MMcfd
 in the Piceance Basin. With over 120,000 net acres of leasehold, Antero has
 identified over 2,800 proved, probable and possible gross drilling
 locations and has acquired or is in the process of acquiring over 250
 square miles of 3-D seismic data. In addition, Antero also owns over 40
 miles of gathering pipeline and 100 MMcfd of gas processing capacity in the
 Arkoma Basin and approximately 20 miles of gathering pipeline in the
 Piceance Basin.
     "We are very pleased to continue our partnership with Warburg Pincus,
 Yorktown Energy Partners and Lehman Brothers Merchant Banking in one of the
 largest private equity commitments ever made in the exploration and
 production sector," said Paul Rady, Chairman and CEO of Antero. "The Antero
 management team has worked together for many years and has had outstanding
 success at finding and developing natural gas reserves in the Mid-Continent
 and Rocky Mountain regions. In the Barnett Shale, Antero had some of the
 highest initial production rates in the play, was a pioneer in the use of
 micro- seismic imaging technology and performed the first simultaneous
 fracture stimulation. We look forward to extending our track record of
 success and innovation in our current plays as well as into new areas of
     Peter R. Kagan, a Warburg Pincus Managing Director, said: "This
 investment is consistent with Warburg Pincus' practice of providing growth
 capital to strong management teams in an effort to build companies of
 meaningful scale. We are tremendously pleased with the strong results our
 partnership has produced to date, and we are excited to continue to work
 with management as they become a leading industry player in
 non-conventional resources."
     About Antero Resources
     Antero Resources Corporation and its affiliate companies are
 headquartered in Denver, Colorado. The original Antero Resources
 Corporation was founded in 2002 by Paul M. Rady, Chairman and Chief
 Executive Officer, and Glen C. Warren, Jr., President and Chief Financial
 Officer. The company's strategy is to acquire, exploit, explore for,
 develop and produce non-conventional natural gas reserves, predominantly
 within the Mid-Continent and Rocky Mountain regions of the United States.
 Antero is also involved in the midstream industry, with natural gas
 gathering, compression and processing assets in areas where it has upstream
 operations. For more information, please visit
     Prior to founding Antero, Rady and Warren were Chairman, President and
 CEO and Executive Vice President and CFO, respectively, of Pennaco Energy,
 Inc. Rady and Warren led Pennaco as it rapidly grew from a small acreage
 holder in the Powder River Basin coal bed methane play in Wyoming into a
 sizable public company with net production of over 50 MMcf per day. In
 February 2001, less than three years after its inception, Pennaco was sold
 for $500 million in cash to Marathon Oil. Prior to his tenure at Pennaco,
 Rady was President and CEO of Barrett Resources Corporation, another
 Rockies-focused producer of natural gas.
     About Warburg Pincus
     Warburg Pincus has been a leading private equity investor since 1971.
 The firm has more than $20 billion under management and invests globally
 and at all stages of a company's life cycle across a range of sectors
 including energy, technology, media and telecommunications, financial
 services, healthcare and life sciences, retail, consumer and industrial and
 real estate. Since the late 1980s, the firm has invested more than $2.4
 billion in companies involved in oil and gas exploration and production,
 energy and power projects and oilfield and other services. For more than
 two decades, Warburg Pincus has been the lead investor in a multitude of
 successful public and private energy companies, including Newfield
 Exploration Co., Spinnaker Exploration, Inc.(since acquired by Norsk Hydro
 ASA), Encore Acquisition Co., Bill Barrett Corp., MEG Energy Corp., Lariat
 Petroleum, Inc., Latigo Petroleum, Inc. and Kosmos Energy LLC. For more
 information, please visit
     About Yorktown Partners
     Yorktown Energy Partners VII, L.P. is the seventh energy dedicated
 private equity partnership managed by Yorktown Partners LLC. Beginning in
 1983, Yorktown has made over 60 investments in a variety of energy
 companies that range from oil and gas production to pipeline construction
 to oil field services to energy-specific manufacturing. Yorktown currently
 has in excess of $2.0 billion under management.
     About Lehman Brothers Merchant Banking Group
     Lehman Brothers Merchant Banking seeks to invest in companies in the
 Americas, Europe and Asia with strong fundamentals, favorable growth
 prospects and positive cash flow. Lehman Brothers' Private Equity business,
 started in 1984, manages more than $20 billion in 18 different fund
 strategies across six asset classes: merchant banking, venture capital,
 real estate, fund-of-funds, credit and infrastructure.

SOURCE Antero Resources Corporation