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PennEnergy’s Oil & Gas Journal Exchange announces strong growth in 2000

HOUSTON, Feb. 27, 2001 (BUSINESS WIRE) — PennEnergy (www.PennEnergy.com), a global business-to-business Internet marketplace for the energy industry, recently formed from the Energy market exchanges and content holdings of pennNET, announced today that its energy market exchange, Oil & Gas Journal Exchange (www.ogjexchange.com), experienced exceptional growth in 2000 and is well positioned for continued growth in 2001. PennEnergy and pennNET are wholly owned subsidiaries of PennWell Corporation.

Oil & Gas Journal Exchange is comprised of Oil & Gas Journal Property Exchange (www.ogjpropertyexchange.com), which conducts both online and offline property auction services, Madison Energy Advisors, a leading upstream transaction advisor, Oil & Gas Journal Equipment Exchange (www.globalequipmentexchange.com) and the e-media site Oil & Gas Journal Online (www.ogjonline.com).

“While other marketplaces struggle to find the right formula for success, we have gathered proven solutions from all aspects of the energy industry, to create the most effective fusion of online and offline solutions,” said Robert F. Biolchini, chairman and CEO of PennEnergy. “When you look at its multiple and diverse components, Oil & Gas Journal Exchange is clearly formed on very solid historical and financial ground. There is no other solution available either online or offline in the energy industry that offers such a comprehensive set of asset disposition and information services. Our unique position and business model is the reason we believe we will continue our rapid growth and leadership role in 2001 and beyond. “

Property
Oil & Gas Journal Exchange’s property service, which includes the Oil & Gas Journal Property Exchange and Madison Energy Advisors facilitated the sale of over $225 million in producing property in 2000. This included the first ever offshore federal water property, located in the Gulf of Mexico on the outer continental shelf, to be listed and sold at any auction, as well as Madison Energy Advisor’s first ever $100 million-plus asset divestment. The property exchange currently has over $250 million in producing property and midstream assets for sale.

The negotiated sales component of Oil & Gas Journal Property Exchange, powered by Madison Energy Advisors, experienced an 85% increase in sales from 1999 to 2000. The company also facilitated its first-ever corporate divestment and first-ever international property divestment.

The Property Exchange’s auction service, which in June 2000 conducted the first fully Web-enabled auction in the energy market, plans at least eight online auctions in 2001. It also plans to expand its well received “Internet First Offering” (IFO) product which made its debut in September 2000. IFO is an online negotiated sales channel that allows sellers to entertain sealed bid offers immediately prior to selling properties at auction.

During 2000, the Property Exchange also established a number of strategic relationships with leading technology suppliers, including Ariba, diCarta and Context Integration.

Equipment

The Oil & Gas Journal Equipment Exchange, which was launched in June of 2000 with over $20 million worth of energy equipment in its inventory, grew at an astronomical rate, ending the year with over $850 million in equipment listings and over $300 million in active quotes. The site currently holds over $1.5 billion in surplus and used equipment listings.

The Oil & Gas Journal Equipment Exchange experienced major international growth during 2000, opening offices in Calgary, Canada; Dubai, United Arab Emirates; Caracas, Venezuela and Buenos Aires, Argentina.

During 2000 the site also established strategic partnerships with Masaood John Brown Ltd., Robert W. Hunt Company, Moody International, OmixAsia, Clarus Corporation, FlashFind, Abnormal Load Engineering, Connexxions, Pentagon Freight Services and Rigzone.com. These strategic partnerships provide critical value-added services and increased global reach to the Equipment Exchange customers.

Media
Oil & Gas Journal Online, which in 1996 was the first publication of its kind to go online, went through a major overhaul in May 2000. The redesign resulted in many new changes: a new look and feel to the site; greater breaking news coverage; increased editorial staff with 10 full time editors and 30 stringers reporting on news from around the world; and a new content management system from Vignette, which allows for breaking news to be posted online faster. The site also established a strategic relationship with a leading newswire service, which allows it to provide an even greater selection of breaking global energy industry news.

In October 2000, senior Oil & Gas Journal Online writer Sam Fletcher, received the prestigious Lloyd N. Unsell Award for excellence in journalism from the Independent Petroleum Association of America (IPAA).

Advertising sales on Oil & Gas Journal Online more than doubled from its 1999 numbers. The site sold 98% of its ad inventory for 2000. Viewer usage also grew significantly over the last year. From January 2000 to January 2001 total monthly page impressions grew by more than twofold while unique users increased by more than two and one-half times.

About Oil & Gas Journal Exchange
PennEnergy’s Oil & Gas Journal Exchange (www.OGJExchange.com) is the e-commerce and e-media portal for the global oil and gas market. The site is the leading centralized e-marketplace for industry professionals to conduct the online purchase and sale of oil and gas producing properties and exploration prospects as well as used and surplus petroleum equipment. The comprehensive suite of e-commerce and auction related products and services offered by Oil & Gas Journal Exchange will improve, expedite and bring greater efficiencies to the transaction process for the petroleum industry.

Based in Houston, Texas, Oil & Gas Journal Exchange is comprised of Oil & Gas Journal Property Exchange, Oil & Gas Journal Equipment Exchange, and the e-media site Oil & Gas Journal Online. The Property Exchange is recognized as the most comprehensive online service for the upstream petroleum industry. It includes the full complement of advisory services from Madison Energy Advisors, and offers its customers the greatest breadth and depth of acquisition and divestiture services in the market. Oil & Gas Journal Equipment Exchange links buyers and sellers of surplus and used oil and gas industry and power generation industry equipment on a global scale. Oil & Gas Journal Exchange also includes Oil & Gas Journal Online (www.OGJOnline.com), the preeminent online daily news and technology service.

About PennEnergy, Inc.
PennEnergy, Inc. is a global, business-to-business Internet marketplace for energy, the world’s most critical and strategically important industry. This rapidly growing Internet company has capitalized on the use of electronic commerce, media and interactivity to build the most vibrant, neutral, and respected online communities for business and engineering professionals in oil and gas, electric power, and related energy markets.

PennEnergy has developed state-of-the-art technology for its e-commerce and content communities including Ariba for its exchanges and Vignette for its content management needs. Its 100+ domestic employees work in Houston, Texas; Tulsa, Oklahoma; Forth Worth, Texas, and Durango, Colorado. PennEnergy has strategic international offices with employees located in London, England; Calgary, Canada; Internet City, Dubai; Buenos Aires, Argentina; Caracas, Venezuela and Singapore. Now a stand-alone affiliate of PennWell and PennNET, PennEnergy has its headquarters in Houston, Texas, the center of the energy industry.