Silverback Exploration II, LLC Forms With $500 Million Equity Commitment From EnCap Investments L.P.

SAN ANTONIO, Texas–(BUSINESS WIRE)–#oilandgas—Silverback
Exploration II, LLC (“Silverback II”), an independent oil and gas
exploration company based in San Antonio, announced today that it has
secured an initial equity commitment of $500 million from EnCap
Investments L.P. (“EnCap”). Silverback II was formed by the same
team that successfully led its predecessor company, Silverback
Exploration, LLC (“Silverback I”), which was also backed by EnCap.

Silverback I developed a significant position in the heart of the
Delaware Basin, including approximately 35,000 net acres, production of
3,500 barrels per day of crude oil equivalent and approximately 600
horizontal drilling locations. In December 2016, its leasehold interests
and related assets were sold to Centennial Resource Development Inc. and
its affiliates (NASDAQ: CDEV) (NASDAQ: CDEVW) for $855 million.

Silverback II was formed to pursue organic development projects and
strategic acquisitions in conventional and unconventional resource plays
across the U.S. and is led by the seasoned Silverback I management team
— Chief Executive Officer Stephen Lipari, Chief Commercial Officer David
Frye and Chief Exploration Officer Jon Conaway. George M. Young Jr. and
Ted Collins Jr. serve as nonexecutive advisers.

“Our team has a high level of expertise in horizontal drilling and a
comprehensive understanding of operational efficiencies that are already
shaping the focus of our new company,” said Silverback CEO Stephen
Lipari. “We are thrilled to partner with EnCap for a second time.
EnCap’s financial strength coupled with the proven track record of the
Silverback team is a compelling combination that provides us with the
ability to source deals, develop assets and create value.”

“Consistent with EnCap’s long history of rebacking management teams on
the heels of a successful exit, we are very pleased to have the
opportunity to partner once again with Silverback,” said EnCap Managing
Partner David Miller.

Silverback II was advised by the Fort Worth office of Kelly Hart &
Hallman. EnCap was advised by Thompson & Knight LLP.

About Silverback Exploration II

Silverback Exploration II is an independent oil and natural gas
exploration company based in San Antonio. The company is led by Chief
Executive Officer Stephen Lipari, Chief Commercial Officer David Frye
and Chief Exploration Officer Jon Conaway. George M. Young Jr. and Ted
Collins Jr. serve as nonexecutive advisers. Silverback II is backed by a
$500 million equity commitment from EnCap Investments L.P. For more
information, please visit www.silverbackexp.com.

About EnCap Investments L.P.

Since 1988, EnCap Investments has been the leading provider of venture
capital to the independent sector of the U.S. oil and gas industry. The
firm has raised 20 institutional oil and gas investment funds totaling
approximately $33 billion and currently manages capital on behalf of
more than 300 U.S. and international investors. For more information,
please visit www.encapinvestments.com.

Contacts

For Silverback Exploration II, LLC:
TEN|10 Group
Meredith
Hargrove Howard, 210-737-4478 m
[email protected]
or
For
EnCap Investments L.P.:
Joele Frank, Wilkinson Brimmer Katcher
Ed
Trissel or Julie Oakes, 212-355-4449