Crusader Energy Corporation Announces Sale to Encore Acquisition Company.

OKLAHOMA CITY, Okla. -- Crusader Energy Corporation ("Crusader") today announced that it has entered into a definitive Purchase and Sale Agreement to sell all of its outstanding stock to Encore Acquisition Company ("Encore"), headquartered in Ft. Worth, Texas. Crusader is an Oklahoma City-based exploration and production company funded by equity investments from its Chief Executive Officer, David D. Le Norman, and Kayne Anderson Energy Fund II, a private equity fund managed by Kayne Anderson Capital Advisors. Crusader's assets are primarily located in the Anadarko Basin and the Golden Trend areas of Oklahoma, as well as in the Texas panhandle and north Texas.

The purchase price for Crusader's stock is $93.5 million. An additional $14.0 million will be paid by Encore, reflecting the cash proceeds to be paid to Crusader by Crusader Energy II, LLC for certain assets not transferring to Encore, bringing the total consideration to $107.5 million.

Crusader Energy II is an entity newly formed and principally capitalized by Mr. Le Norman and Kayne Anderson, and will be operated by the management team departing Crusader with the stock sale to Encore. The assets to be transferred to Crusader Energy II immediately prior to the stock sale are primarily land assets which it intends to develop aggressively over the coming months.

Mr. Le Norman stated that he is very pleased with the terms of the sale to Encore, noting that Encore will have working interests in several of the assets purchased by Crusader Energy II. He added that he looks forward to continuing to develop these projects as well as potentially others with Encore in order to leverage the excellent relationship that was further developed through the process.

Lehman Brothers' Greg Pipkin served as the financial advisor to Crusader with respect to this transaction.

Kayne Anderson Capital Advisors has completed over 40 transactions with more than 20 energy companies since 1991, focusing on direct equity investments in early to mid-stage oil and gas companies in North America. The energy private equity management team of Kayne Anderson Capital Advisors consists of seven professionals based in Houston and Los Angeles, managing more than $1 billion of the $4.5 billion in assets under the firm's management.