Milagro Acquires Producing Assets in S. Texas

Milagro announced that, through its wholly owned subsidiary, Milagro Producing, LLC, it has completed the purchase of certain South Texas producing assets. The assets acquired in the transaction include 77 wells in Starr and Hidalgo Counties, Texas, 60 of which are currently operated by Milagro Exploration, LLC, also a wholly owned subsidiary of Milagro Oil & Gas, Inc. The acquisition, which closed September 29, 2011, with an effective date of July 1, 2011, adds approximately 3.0 MMcfe per day net to Milagro, with proved reserves of approximately 15.0 Bcfe. With this and our previous acquisition in 2011, Milagro Oil & Gas, Inc. has now met its goal of replacing projected 2011 production.