CDX Acquired by Private Equity Group Led By TCW.

DALLAS -- CDX, LLC (CDX), the parent company of CDX Gas, LLC, Express Drilling Systems, LLC; CDX Canada; and CDX Gas International, announced today that it has signed an agreement with a special purpose affiliate of TCW whereby TCW, together with certain co-investors, will acquire membership units of CDX. The purchase price is based upon an asset value for CDX of approximately $835 million in cash and other consideration. The purchase is expected to close at the end of this month.

"CDX owns an impressive portfolio of producing and non-producing mineral leases in coal bed methane and other unconventional natural gas areas, has developed specialized technologies to extract the methane locked in these reservoirs, and has assembled an exceptional, world class team of technical, managerial and support professionals. This transaction with TCW will 'robustly capitalize' CDX to permit it to develop its property holdings in various areas of the United States and Canada, as well as an expansion of its international operations," said Glen Kinder, president and CEO of CDX.

Mr. Kurt A. Talbot, Managing Director of TCW, commented "We are very excited about this investment opportunity with CDX. The company was attractive to us for many different reasons, including its substantial acreage position in every major resource play in North America, its inventory of thousands of drillable locations, its proprietary and environmentally-friendly drilling technology, its fleet of 17 drilling rigs and in-house directional drilling company, and its highly experienced management team and technical staff. CDX is a great match for TCW and its energy investors." UBS Investment Bank acted as exclusive advisor to TCW for this transaction.

About CDX, LLC

Formed in 1991, Dallas-based CDX is an "on-shore" natural gas exploration and production company, focused primarily on unconventional resources, such as coal, shale and tight sands using the patented Z-PINNATE(R) Horizontal Drilling and Completion System. CDX and its affiliated companies operate in numerous states, Alberta, Canada and in several foreign countries.

About TCW

Founded in 1971, TCW has approximately $123 billion in assets under management. TCW clients include many of the nation's largest corporate and public pension plans, financial institutions, endowments and foundations, as well as a substantial number of foreign investors and high net worth individuals. TCW's Energy & Infrastructure Group is one of the leading providers of institutional capital to the energy sector having raised more than $6 billion in capital in 12 separate funds, and having made more than 170 portfolio investments, including a prior mezzanine debt investment in CDX. In 2005, the Group invested $894 million in 27 transactions in 10 countries. For more information, please visit www.tcw.com.

For more information on CDX, visit www.cdxgas.com.