Mar 02, 2023, 08:05 ET

Project to Utilize Captured Flare Gas for On-Site Power Generation

OKLAHOMA CITY and HOUSTON, March 2, 2023 /PRNewswire/ -- Riley Exploration Permian, Inc. (NYSE American: REPX) ("Riley Permian") and Conduit Power, LLC ("Conduit"), a portfolio company of Grey Rock Investment Partners ("Grey Rock"), today announced that they entered into definitive agreements to form a joint venture that will own and operate on-site power generation utilizing captured flared natural gas (the "Project") to power Riley Permian's operations in Yoakum County, Texas. The Project will be completed in phases and will ultimately include 20 megawatts ("MW") of power. Phase 1 of the Project will provide 10 MW of on-site generation and is expected to be operational by June 2023, with an additional 10 MW in Phase 2 anticipated to be operational by late 2023 or early 2024.

Strategic Rationale

• Improve Operations: Unreliable power quality can lead to lost revenue from production downtime and/or costly repairs. The new power infrastructure is expected to improve Riley Permian's operating resiliency with a consistent, baseload power source in an increasingly intermittent power grid.

• Control Costs: Vertically integrating Riley Permian's power need with a behind-the-meter solution will allow Riley Permian to better manage its long-term energy costs.

• Reduce Flaring and Emissions: At the completion of both phases, the Project will capture a substantial amount of natural gas currently flared, thereby allowing Riley Permian to reduce its CO2 emissions.

Management Commentary

"We sought Conduit as an aligned partner based on their expertise, which will help us navigate the complexities of the power industry," said Bobby Riley, CEO of Riley Permian. "Their team's depth of experience offered us a turnkey solution, including design, procurement, build and implementation. We believe this Project is indicative of the types of creative initiatives we pursue as a company, including those that enable higher operational control and situations that turn challenges into opportunities."

"We are excited to partner with Riley Permian and look forward to building and operating this new infrastructure that allows them to grow their operations in the Permian Basin," said Matt Whitaker, Conduit Managing Director. "Our customers benefit from controlling critical infrastructure, such as electric power, as a means to improving costs and operational efficiency. At Conduit, we provide a total power solution that enables our customers to increase reliability, lower power costs and reduce carbon emissions."

Advisors

Kirkland & Ellis served as legal advisor for Riley Permian and Locke Lorde served as legal advisor for Conduit.

About Riley Exploration Permian, Inc.

Riley Permian is a growth-oriented, independent oil and natural gas company focused on the acquisition, exploration, development and production of oil, natural gas, and natural gas liquids. For more information, please visit www.rileypermian.com.

About Conduit Power, LLC

Conduit provides customized full-service solutions to help commercial and industrial customers lower power procurement costs and improve the uptime and reliability of delivered power.  Conduit's offering includes turnkey design, procurement, and construction of electrical infrastructure, ongoing operations and maintenance of equipment, power procurement and brokerage, and asset financing.  Conduit's innovative, reliable, and dispatchable power reduces the carbon footprint of their customers while enabling further integration of additional renewable generation into their systems. Conduit is led by power and energy industry executives Matt Herpich, Travis Windholz, and Matt Whitaker, who have more than 50 years of combined experience across the power trading, power generation, renewables, battery storage, chemicals, and upstream exploration and production industries. The Conduit management team possesses a comprehensive technical, commercial, and analytical skillset that is critical in navigating a complex and dynamic power industry.  For more information, visit conduitpower.co.

About Grey Rock

Grey Rock Investment Partners is a private equity firm with more than $1.3 billion in asset value across its private equity fund platform. The firm invests across the energy value chain with private equity funds focusing on investments in natural resources, carbon capture, industrial electrification, and methane impact. For more information, visit www.grey-rock.com.

Investor / Media Contacts

Riley Permian
Rick D'Angelo
IR@rileypermian.com 
405-438-0126

Conduit Power
Meredith Hargrove Howard
meredith@redbirdpr.com
210-737-4478

Grey Rock
Meredith Hargrove Howard
meredith@redbirdpr.com 
210-737-4478