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Constellation Energy Partners LLC (CEP) Starts 2008 with “Strong Foundation”

Constellation Energy Partners LLC (NYSE: CEP) recently posted its 2007 fourth-quarter results and announced a $53.4 million acquisition of Woodford Shale producing wells from Constellation Energy Group.

“The announcement of the dropdown acquisition of the Woodford Shale asset highlights an important competitive advantage,” CEO Felix Dawson stated in the press release. “CEP has grown its portfolio in multiple ways, through basin consolidation, coalbed methane plays and now, a dropdown acquisition from our sponsor. This demonstrated flexibility in acquisition approaches is an important differentiator for CEP in the MLP sector.”

He continued, “The ability to execute mutually beneficial dropdown transactions was one of the main commercial concepts considered when Constellation Energy formed CEP, and we think this transaction highlights the benefits of that capability. In the future, as Constellation Energy further develops its properties, we will look to make other dropdown acquisitions.”

The company posted “solid results” for the quarter, meeting goals set at the beginning of the year. Dawson noted strong performance through the company’s Black Warrior Basin asset, as well as through its string of acquisitions in the Cherokee Basin, which tripled production.

“We begin 2008 with a strong foundation for portfolio growth and a sharpened focus on our operations,” Dawson said. “CEP continues to execute well overall and we’re in a good position to build on our past accomplishments over the coming year.”

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