GSO Capital Partners Announces the Expansion of its Partnership with Sequel Energy Group to Pursue Drilling Joint Ventures and Non-Operated Oil & Gas Transactions

DENVER & NEW YORK–(BUSINESS WIRE)–GSO Capital Partners LP (“GSO”), the credit platform of Blackstone
(NYSE: BX), is pleased to announce the formation of Sequel Energy Group
II LLC (“Sequel II” or the “Company”), a private, Denver based oil and
gas company. GSO and the current management team, led by industry
veterans Doug York, Jeff Hemphill and Dave Kornder, formed Sequel Energy
Group LLC (“Sequel I”) in November 2016 with an initial capital
commitment in excess of $500 million. Over the past two years, Sequel I
has successfully deployed this capital in four separate drilling joint
venture transactions. Consistent with its current strategy, Sequel II
will target structured investments in non-operated oil and gas working
interests in proven resource plays throughout North America. The
additional $500 million capital commitment from funds managed by GSO and
the founding members of Sequel will bring combined committed capital to
the Sequel platform to over $1 billion, making the Company a leader in
its market.

Sequel will continue to benefit from its large and flexible capital base
and the technical expertise of its management team, and has developed a
reputation as the preferred partner for operators seeking capital to
support the development of their oil and gas assets. The Sequel
management team has over 80 years of combined experience in the
exploration, development, and operation of oil and gas fields across
nearly every major producing basin in the United States.

Commenting on the newly formed company, Sequel’s three founding members
stated, “We could not be more delighted to expand our partnership with
GSO. We believe drilling joint ventures provide the ideal shareholder
and balance sheet friendly capital solution for oil and gas operators
looking to maintain their capital development programs within cash flow.
We look forward to working with GSO and its energy team in successfully
executing the next iteration of our business plan.”

Michael Zawadzki, Senior Managing Director and Co-Head of GSO Energy
said, “We are excited to continue our partnership with the Sequel
leadership team and build upon the success of Sequel I. Our scale and
flexible capital, large relationship network, and deep industry
expertise uniquely position GSO and Sequel to be the partner of choice
for drilling joint venture transactions. We look forward to continuing
our great relationship with Doug, Jeff, and Dave and are highly
confident in their ability to implement this strategy in the years
ahead.”

About GSO Capital Partners LP

GSO Capital Partners LP is the global credit investment platform of
Blackstone. With approximately $128 billion of assets under management,
GSO is one of the largest alternative managers in the world focused on
the leveraged-finance, or non-investment grade related, marketplace. GSO
seeks to generate attractive risk-adjusted returns in its business by
investing in a broad array of strategies including mezzanine debt,
distressed investing, leveraged loans and other special-situation
strategies.

Contacts

For press inquiries, please contact:
Public Affairs
Blackstone
New
York
(212) 583-5263

For further information or inquiries as to oil and gas investment
opportunities, please contact the Sequel team as follows:

Sequel
Energy Group LLC
8101 E. Prentice Ave. Suite 1175
Greenwood
Village, CO 80111
(303) 468-2106
Jeff Hemphill [email protected]
Dave
Kornder [email protected]
Doug
York [email protected]

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