Rio Vista Energy Partners L.P. Announces Results For The Quarter Ended September 30, 2008

Business Wire, Nov 24, 2008

Increased Revenues and Gross Profit From Oklahoma Assets Over Prior Quarter

BROWNSVILLE, Texas -- Rio Vista Energy Partners L.P. ("Rio Vista") (NASDAQ: RVEP), an energy services master limited partnership focused on the development of oil and gas in Oklahoma and the terminalling and transportation of bulk chemical and petroleum products in Virginia, today announced its financial results for the quarter ended September 30, 2008. Rio Vista reported a net loss of ($1.0) million or ($0.38) per common unit for the three months ended September 30, 2008 and a net loss of ($4.6) million or ($1.79) per common unit for the nine months ended September 30, 2008. During the three months ended June 30, 2008, Rio Vista reported a net loss of ($1.7) million or ($0.65) per common unit.

The decrease in net loss for the quarter ended September 30, 2008 compared with the quarter ended June 30, 2008 was primarily due to improved sales and higher prices received on gas produced from Rio Vista's Oklahoma operations and reduced corporate selling general and administrative expenses and costs associated with discontinued operations. The results of operations from Rio Vista's terminalling and transportation business during the quarter ended September 30, 2008 did not change significantly from the results of operations during the quarter ended June 30, 2008. However, average monthly revenues and net income from Rio Vista's terminalling and transportation business increased by approximately $154,000 (25.0%) and $18,000 (68.0%) for the quarter ended September 30, 2008 compared with the average monthly revenues and net income during the quarter ended September 30, 2007 (Rio Vista's terminalling and transportation business commenced on July 28, 2007 and therefore only 2 months of operations were reflected in the quarter ended September 30, 2007).

Three months ended September 30, 2008 Compared With Three months ended September 30, 2007

Because of Rio Vista's rapid growth through acquisitions during 2007, the historical results of operations and period-to-period comparisons of these results and certain financial data may not be meaningful or indicative of future results. The following tables of Rio Vista's results of operations from continuing operations for all periods presented excludes the results of operations related to the assets that have been disposed, including revenues, direct costs, associated interest expenses, minority interest and income taxes, which have been reclassified as discontinued operations (see below). The results of operations from continuing operations reflect only the results associated with (i) the Transportation and Terminalling Business consisting of Regional's transportation of bulk liquids, and its related terminalling and storage services; (ii) the LPG (sold December 31, 2007) operations of the US-Mexico Pipelines and Matamoros Terminal Facility; and (iii) the oil and gas operations associated with the Oklahoma Assets, and all indirect income and expenses of Rio Vista relating thereto. Revenues from Rio Vista's Transportation and Terminaling Segment commenced on August 22, 2006 although expenses associated with operation of the US-Mexico Pipelines and Matamoros Terminal Facility were incurred during the entire period for each period presented. Revenues from the oil and gas segment commenced on November 19, 2007.

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September 30, 2008 Quarterly Distribution Not Declared

Rio Vista also announced today that it will not make any cash distributions for the quarter ended September 2008.

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. Through its subsidiaries, Rio Vista currently owns certain leasehold interests of oil and gas producing properties and associated pipeline gathering systems in East Central Oklahoma. Rio Vista is also engaged in liquid bulk storage, transloading and transportation of chemicals and petroleum products through its assets and operations in Hopewell, Virginia. Rio Vista seeks to grow primarily through the acquisition of qualified oil and gas assets. Penn Octane Corporation (OTCBB: POCC) owns 75% of Rio Vista GP LLC, the general partner of Rio Vista.

Forward-Looking Statements

Certain of the statements in this news release are forward-looking statements, including statements regarding the results of operations of Rio Vista and statements regarding the amount and timing of the September 2008 quarterly distributions to unit holders. Although these statements reflect Rio Vista's beliefs, they are subject to uncertainties and risks that could cause actual results to differ materially from expectations. The acquisition of the properties in East Central Oklahoma and Regional may not prove successful and has substantially increased Rio Vista's and its subsidiaries' indebtedness and contingent liabilities, and may present integration difficulties. Continuation and expansion of production may require unforeseen capital investment. Future production may be lower than anticipated, and actual natural gas reserves may prove lower than estimated. If Rio Vista does not receive sufficient revenues from the use of its assets, Rio Vista would suffer material adverse consequences to its business, resulting Rio Vista's inability to meet its debt obligations when due and reduced cash available for distributions. Distributions from Rio Vista's Oklahoma subsidiaries are subject to conditions as more clearly defined under the credit facility with TCW, including prohibition of distributions until December 2008 and thereafter limited to 75% of defined available cash flow. As a result, Rio Vista may not have sufficient available cash to pay its required debt obligations and/or minimum quarterly distributions. In addition, Rio Vista may not distribute sufficient cash to meet the tax obligations of unitholders associated with the ownership of common units. If Rio Vista does not have sufficient capital resources for acquisitions or opportunities for expansion, Rio Vista's growth will be limited. Rio Vista may be unable to complete future acquisitions of qualified oil and gas assets or other transactions and, even if completed, acquisitions may not prove successful. Additional information regarding risks affecting Rio Vista's business may be found in Rio Vista's most recent reports on Form 8-K, Form 10-Q and Form 10-K and its registration statement on Form 10 and in Penn Octane Corporation's most recent reports on Form 8-K, Form 10 Q and Form 10-K filed with the Securities and Exchange Commission.