Quantum Energy Partners, Energy Trust Partners, Walter Oil & Gas, Rick Louden and John Elzner Form Denali Oil & Gas Partners III, LLC

Houston, Texas, UNITED STATES

HOUSTON, TX--(Marketwire - November 12, 2008) - Quantum Energy Partners IV, LP and affiliates ("Quantum") today announced that Quantum, Energy Trust Partners III, LP ("Energy Trust"), Walter Oil & Gas Corporation ("Walter Oil & Gas"), Rick Louden, John Elzner and fellow officers have formed Denali Oil & Gas Partners III, LLC ("Denali III") to acquire, exploit, and explore for oil and gas in South Texas. The company's management team has extensive operating experience in South Texas and has focused on that area since Denali was founded in 2003. The same partnership funded Denali Oil & Gas Partners, LP in June 2003 and Denali Oil & Gas Partners II, LP in December 2005.

In addition to exploration, Denali III will focus on acquiring oil and natural gas properties with significant drilling potential and values ranging up to $300 million. Initial equity commitments from Quantum, Energy Trust, Walter Oil & Gas, and the management team are $140 million with the option for additional equity infusions for larger acquisition opportunities. Denali III's office is located at 650 N. Sam Houston Pkwy, E., Suite 500, Houston, TX 77060. For more information, please contact Rick Louden or John Elzner at (281) 847-1888.

Founded in 1998, Quantum is an investment firm specializing in the energy industry with over $5.0 billion in capital under management. Quantum primarily focuses on the oil and gas upstream and midstream sectors and, on a more select basis, will consider opportunities in the oil field services and equipment, coal, power generation and transmission, and renewable and alternative energy sectors. To learn more about partnering with Quantum, please contact David L. Bole at (713) 225-4800 or visit Quantum's website at www.quantumep.com.

Contact Information: Contacts: Rick Louden John Elzner (281) 847-1888