News Release

HOUSTON--(BUSINESS WIRE)--Jun. 28, 2012-- LRR Energy, L.P. (NYSE:LRE) ("LRE" or "LRR Energy") announced today that it, as guarantor, and LRE Operating, LLC, its wholly owned subsidiary, as borrower, have entered into a $50 million senior secured second lien term loan facility (“term loan”) with Wells Fargo Energy Capital, Inc. The term loan increases LRE’s debt capacity and provides additional liquidity as LRE continues to execute its business strategy.

The term loan matures on January 20, 2017 and has an initial borrowing rate of LIBOR plus 5.5% through March 31, 2013. The borrowing rate increases to LIBOR plus 7.0% from April 1, 2013 through December 31, 2013 and the borrowing rate will remain at LIBOR plus 8.5% from January 1, 2014 until maturity. The term loan has customary covenants, including financial covenants requiring LRE to not exceed a maximum total debt to EBITDAX ratio and to maintain a minimum current ratio and minimum proved reserve PV-10 to total debt ratio.

Borrowings under the term loan will be used to partially repay amounts outstanding under LRE’s $500 million senior secured revolving credit facility (“senior facility”). Pro forma for the term loan, LRE will have $50.0 million of outstanding borrowings under the term loan and $172.8 million of outstanding borrowings under the senior facility. The borrowing base under LRE’s senior facility will remain at $240.0 million with undrawn availability of $67.2 million.

Consistent with its hedging strategy, LRE entered into additional hedging contracts for the remainder of 2012 and 2013. As of June 28, 2012, LRE had the following outstanding commodity derivative contracts:

Jaime Casas, Vice President and Chief Financial Officer, commented, “We are very pleased to have closed our new second lien term loan. We believe that the term loan, along with our existing senior facility, cash on hand and expected cash flows from operations, will continue to provide us with ample working capital to consistently execute on our strategy, including pursuing all of our planned 2012 capital expenditures, making all of our distributions as well as providing us with incremental debt capacity for future acquisitions and growth. Additionally, we continue to enter into additional commodity hedges to protect our cash flows and distributions.”

For more information on the term loan, please refer to the Form 8-K that LRE will file with the Securities and Exchange Commission (“SEC”) in the next few days.

About LRR Energy, L.P.

LRR Energy is a Delaware limited partnership formed in April 2011 by affiliates of Lime Rock Resources to operate, acquire, exploit and develop producing oil and natural gas properties in North America. LRR Energy's properties are located in the Permian Basin region in West Texas and southeast New Mexico, the Mid-Continent region in Oklahoma and East Texas and the Gulf Coast region in Texas.

Forward-Looking Statements

This press release includes "forward-looking statements" — that is, statements related to future events. Forward-looking statements are based on the current expectations of LRR Energy and include any statement that does not directly relate to a current or historical fact. In this context, forward-looking statements often address expected future business and financial performance, and often contain words such as "may," "predict," "pursue," "expect," "estimate," "project," "plan," "believe," "intend," "achievable," "anticipate," "target," "continue," "potential," "should," "could" and other similar words. Forward-looking statements in this press release relate to, among other things, LRR Energy’s expectations regarding future results and working capital. Actual results and future events could differ materially from those anticipated or implied in such statements. Forward-looking statements involve certain risks and uncertainties, and ultimately may not prove to be accurate. These risks and uncertainties include, among other things, a decline in oil, natural gas or NGL prices, the risk and uncertainties involved in producing oil and natural gas, competition in the oil and natural gas industry, governmental regulations and other factors. Actual results could differ materially from those anticipated or implied in the forward-looking statements due to the factors described under the captions "Risk Factors" in LRR Energy's Annual Report on Form 10-K for the year ended December 31, 2011 and LRR Energy's subsequent filings with the SEC. All forward-looking statements speak only as of the date of this press release. LRR Energy does not intend to update or revise any forward-looking statements as a result of new information, future events or otherwise. All forward-looking statements are qualified in their entirety by this cautionary statement.

Source: LRR Energy, L.P.

LRR Energy, L.P.
Todd Hassen, 713-292-9534
Director of Finance
thassen@lrrenergy.com
or
Jaime Casas, 713-345-2126
Chief Financial Officer
jcasas@lrrenergy.com