Mustang Fuel Corporation Announces $65 Million Midstream Investment

OKLAHOMA CITY–(BUSINESS WIRE)–Oklahoma-based Mustang Fuel Corporation announced today that its
midstream subsidiary Mustang Gas Products, LLC (“MGP”) is undertaking a
significant $65 million capital program aimed at increasing the
capacity, efficiency and reach of its midstream assets.

According to President and CEO Carey Joullian, this important
infrastructure investment is about being able to provide high quality
service to its producers, particularly in the very competitive
environment of what’s known as the STACK (Sooner Trend Anadarko
Basin Canadian and Kingfisher).

“Leveraging off of our 65 plus years’ experience in the midstream
business and our sizeable existing footprint in the STACK, this capital
spend will significantly enhance our position as a preferred midstream
operator in Oklahoma,” Joullian said.

MGP’s capital spending program is already underway and within the next
18 months will result in increased system-wide gathering capability and
increased plant capacity – to more than 225 million cubic feet per day
(MMCFD). Scheduled improvements include upgrading horsepower, replacing
older equipment, installing new pipe and adopting new technologies for
process, efficiency and control enhancements.

“Altogether, MGP has committed more than $65 million to these announced
improvements,” Joullian said. “MGP will source the committed capital
internally, which will allow us greater flexibility under existing
credit sources in undertaking future projects. With our current spending
program, we intend to play an increasing role helping producers develop
the world-class STACK play here in Oklahoma.”

MGP currently operates a “super system” consisting of four cryogenic gas
processing plants, a straddle plant, more than 4,200 miles of pipe and
110,000 horsepower of compression spread over 10 counties in central and
north central Oklahoma. The majority of MGP’s “footprint” is in
Oklahoma’s STACK play and is concentrated in Kingfisher, Blaine,
Canadian, Garfield and Major counties, where MGP gathers gas from nearly
2,000 sections. MGP can currently process up to 175 MMCFD and offers
both high-pressure and low-pressure gathering. MGP also connects to
multiple pipelines, allowing for increased optionality, and has
contracted for 70 MMCFD of firm takeaway capacity.

About Mustang Fuel

Mustang Fuel Corporation is a private Oklahoma City based independent
energy company engaged in exploration, production, gathering, processing
and marketing of oil and natural gas in the Mid-Continent region. More
information is available at www.mustangfuel.com.

Contacts

Propeller Communications
Kristy White, 918-638-0686
[email protected]