First Reserve Sells Caledonia Oil & Gas Limited to E.on for £470 Million

Acquisition of Leading North Sea Gas Production Company to Strengthen and Diversify its Global Position

Greenwich, CT, September 26, 2005 — First Reserve Corporation, the premier private equity firm specializing in energy industry investments, announced today the sale of its portfolio company Caledonia Oil & Gas Limited, a growing North Sea gas production company, to E.on (NYSE:EON), a top global power and gas company. The transaction, subject to approval by the relevant British authorities, has an enterprise value of £470 million.

“The growth of Caledonia since we formed the company in 2003 reflects the exceptional talent and efforts of the team,” said William E. Macaulay, Chairman of First Reserve. “We are extremely pleased to have partnered with them again in this successful transaction. Looking forward for Caledonia, we believe E.on represents a good strategic fit for the company which will allow E.on to substantially expand its access to natural gas reserves that are located predominantly in the U.K. Southern gas basin.”

ABN AMRO acted as sole advisor to First Reserve on the transaction.

Media Contact:
Alan Katz
Cubitt Jacobs & Prosek for First Reserve Corp.
212-279-3115 ext. 211
alan@cjpcom.com