PSEC – A Prospect Capital Fund

Prospect Energy Corporation Makes Senior Secured Debt Investment in Barnett Shale Gas Development Company TLOGH, L.P. and Announces Follow-on Financing

November 1, 2006

NEW YORK, NY – (MARKET WIRE) – 11/01/06 – Prospect Energy Corporation
(NASDAQ: PSEC) (“Prospect”) announced today that it has made a $15.5
million senior secured investment in TLOGH, L.P. (“TLOGH”), a gas
development company based…