NFR Energy LLC Provides Updated 2012 Guidance

HOUSTON, May 25, 2012 /PRNewswire/ -- NFR Energy LLC today announced it has revised its full year 2012 guidance. David Sambrooks, NFR Chief Executive Officer, commented: "In clear recognition and response to the current natural gas price environment, NFR has revised its 2012 capital budget and operational plans to further reduce capital expenditures directed towards dry gas type projects. This capital reduction allows for some re-allocation to our new liquids rich projects, while further enhancing our liquidity position."

The Company's revised full year 2012 guidance is as follows:

Production & Operating Expense:

Capital Activity:

The revised 2012 capital budget has been set at approximately $120 - $135 million.  Drilling and completion capital is now expected to be approximately $100 million of the 2012 capital budget (compared to previous guidance of $130 million).  The Company's revised capital budget reflects plans to run one rig in 2012 and focus activity on drilling Cotton Valley horizontals and the completion of a number of drilled wells that were in inventory at December 31, 2011.  The remaining portion of the capital budget will be directed towards new venture projects targeting oil opportunities, including the Company's previously discussed Eagle Ford farm-in and DK/East Texas new venture acreage.  The 2012 capital program is flexible and may be adjusted throughout the year in response to the success of the Company's new venture activities.

ABOUT NFR ENERGY LLC

NFR Energy LLC is a privately‐held natural gas and oil company based in Houston, Texas. The Company's current operations are principally located in East Texas, with production from the Haynesville Shale and Cotton Valley Sand formations.

This press release includes "forward-looking statements." All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements include, but are not limited to forward-looking statements about  plans, strategies, objectives and anticipated financial and operating results of the Company, including the Company's drilling program, production, hedging activities, capital expenditure levels and other guidance. These statements are based on certain assumptions made by the Company based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating natural gas and oil reserves and in projecting future rates of production, cash flow, access to capital and the timing of development expenditures.  See "Risk Factors" in the Company's Annual Report posted at www.nfrenergy.com and other public filings and press releases.

Any forward-looking statement speaks only as of the date on which such statement is made and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.

Web Site: http://www.nfrenergy.com/

SOURCE NFR Energy LLC