Rio Vista Energy Partners L.P. Enters Into Letters of Intent to Acquire Interests in Oil Producing Properties and Associated Pipeline Gathering Systems

Business Wire, July 12, 2007

Acquisitions Expected to Accelerate Limited Partnership's Transition to Oil and Gas Producer

HOUSTON -- Rio Vista Energy Partners L.P. (NASDAQ: RVEP), or "Rio Vista" or the "Limited Partnership", an energy services master limited partnership, announced today that it has entered into letters of intent to acquire assets and/or stock including certain leasehold interests of oil and gas producing properties (the "Properties") and associated pipeline gathering systems from four privately held companies (the "Companies") based in East Central Oklahoma.

The Properties located in East-Central Oklahoma are situated in McIntosh, Haskell and Pittsburg Counties. The leases to be acquired comprise approximately 22,000 gross HBP acres (Held By Production), a 25-mile pipeline that gathers gas from multiple Properties located in Haskell and Pittsburg Counties and a 40-mile pipeline that receives gas from leases in the Texanna area north of Lake Eufaula and delivers to the ONG-R-900 intrastate pipeline in McIntosh County. The Companies currently have a majority interest in a total of 93 operated wells and 16 non-operated wells primarily from Booch sand, Hartshorne Coal Bed Methane, George's Fork and Spiro wells. The Companies are presently involved in the development for the shallow reserve targets. There are an additional 114 identified drilling locations in the upper formations with upside potential. Rio Vista intends to explore the additional upside opportunities that exist in the deeper formations located on the Properties such as the Caney Shale and Woodford Shale.

Under the terms of the letters of intent, Rio Vista would pay a total of $9.4 million in cash, assume debt of approximately $16.5 million, and issue to the sellers approximately $1.5 million of Rio Vista common units. The historical estimated monthly revenues before allocation of interests were approximately $486,000 plus pipeline income.

Under the terms of the letters of intent, all of the acquisitions from the Companies must be closed simultaneously. In addition, the acquisitions are subject to customary due diligence related to financial, legal and environmental matters, execution of definitive purchase and sale agreements, assignment of permits and leases, consents from third parties including existing secured lenders, and receipt of additional financing. The transactions are also subject to the approval by the board of managers of Rio Vista and other closing conditions.

"We believe the acquisition of these assets provides us with compelling near-term production opportunities in historically proven areas of coal bed methane (CBM) production," said Ian Bothwell, Acting Chief Executive Officer of Rio Vista. "These fields in Oklahoma have produced large amounts of natural gas. With numerous additional attractive drilling locations we have identified, combined with the shallow drilling required, we believe that we can expand production with minimal capital risks. In addition, these acquisitions, if completed, will increase and further diversify our production capabilities as we seek to grow our oil and gas assets."

Earlier this week, Rio Vista announced that it had entered into a letter of intent to acquire substantially all of the assets, including leases, contracts and other intangibles of Northport Production Company ("Northport"), a privately held company, for $18 million plus assumed debt of approximately $2 million. Northport is an independent oil and gas exploration firm with a production focus in the mid-continent region of the United States. Founded in 1993 and based in Oklahoma City, Oklahoma, Northport drills, operates and manages wells in Oklahoma, Texas, Kansas, New Mexico, Alabama and West Virginia. Since its inception, it has drilled and acquired significant reserves and leases in Oklahoma and New Mexico. Presently, Northport owns and operates over 100 wells and has non-operating joint venture interests in an additional 150 producing properties. Completion of the Northport acquisition is subject to customary due diligence related to financial, legal and environmental matters, execution of a definitive purchase and sale agreement, assignment of permits, leases and consents from third parties including secured lenders. The transaction is also subject to the approval by the board of managers of Rio Vista and other closing conditions.

About Rio Vista Energy Partners L.P.

Rio Vista is a master limited partnership focused on acquiring and developing oil and gas exploration, production and transportation assets. It currently owns certain liquefied petroleum gas assets, including pipelines running from a terminal facility in Brownsville, Texas owned by TransMontaigne Product Services, Inc. ("TransMontaigne") to a terminal facility in Matamoros, Mexico owned by Rio Vista. Pursuant to an LPG Transportation Agreement with TransMontaigne, Rio Vista uses its assets to transport LPG exclusively for TransMontaigne on a fee-for-services basis. Rio Vista seeks to grow through the acquisition of qualified oil and gas assets.