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TEAK MIDSTREAM ACQUIRES TEXANA PIPELINE

Texana Gathering Assets Provide Footprint for TEAK’s Strategic Growth in Eagle Ford Shale

DALLAS, July 15, 2010 — Dallas-based TEAK Midstream, L.L.C. today announced its acquisition of Texana Pipeline Company LLC, a natural gas gathering and NGL transportation company.  The transaction includes over 325 miles of Texana’s intrastate gathering pipeline assets located throughout 17 South and East Texas counties.  Significant portions of the acquired assets are located in and around the prolific Eagle Ford Shale formation.

“Texana’s gathering assets provide a strategic footprint for TEAK’s planned growth in the Eagle Ford Shale. Our solid financial position and industry relationships allow us to leverage Texana’s existing operations to accelerate growth and expand the services we offer customers in South and East Texas,” says TEAK Co-Chief Executive Jim Wales.  “This acquisition is just one of many growth steps for TEAK.”

Seven Texana employees will join the TEAK team, including Gayle W. Muench.  Muench will serve as vice president of Corporate Development and will focus most of his efforts on executing TEAK’s Eagle Ford Shale growth strategy.  He will be located in the company’s new regional office in San Antonio.

“We are pleased to welcome Gayle and his team to TEAK.  Gayle’s 30 years of industry experience, combined with his focus on building and expanding customer relationships, provides a solid foundation for TEAK’s growth in the Eagle Ford Shale“ says TEAK Co-Chief Executive A. Chris Aulds.

The acquisition was effective July 1, 2010.

About Gayle Muench

Gayle Muench has 30 years of experience in many aspects of the energy industry.  He worked for Texas Oil & Gas Corporation from 1981 through 1995 in a variety of roles on the midstream and upstream sides of the business.  He was specifically involved in various technical, project development, gas marketing and planning positions.  From 1995 through 2003, he was at Enron where he held positions in energy finance and origination and in the retail services portion of the business.  Muench started Texana Pipeline Company LLC in 2007.

Muench holds a Bachelor of Science degree in Petroleum Engineering from Texas A&M University and a Master of Business Administration from the Cox School of Business at Southern Methodist University.  He is a Registered Professional Engineer in the state of Texas.

About TEAK Midstream

TEAK Midstream, L.L.C. provides gathering, transmission, treating, processing, compression, marketing and price risk management services in key gas producing areas of the United States. TEAK is led by A. Chris Aulds and James R. Wales.  Prior to starting TEAK, they were two of the original three founders of Crosstex Energy, Inc. (NASDAQ symbol: XTXI) where they were instrumental in growing the company until the time of their departure in 2007.  TEAK Midstream is backed by Natural Gas Partners, an affiliate of NGP Energy Capital Management.