Hiland Partners, LP (Nasdaq: HLND - News) today announced the signing of an agreement to construct and operate gathering pipelines and related facilities associated with the development of a portion of the acreage owned by Continental Resources, Inc (”Continental”) in the Woodford Shale Play in the Arkoma Basin of southeastern Oklahoma.

Hiland Partners’ plans are to make an initial capital investment of approximately $13 million by the end of 2007 and totaling up to $23 million over the next four years to build a 40 MMcf/d refrigeration processing plant and install field gathering, compression and associated equipment. The new gathering system will be designed to provide low-pressure and highly reliable gathering, compression, dehydration, and processing services. The gathering infrastructure is expected to include more than 15,500 horsepower of compression to provide takeaway capacity in excess of 40 MMcf/d. The initial term of the agreement is 10 years. The agreement grants Hiland Partners the right to process the gas and further provides that we will receive certain fixed fees for the dehydration, gathering and compression of the gas. Expected startup of the initial phase of the project should occur by the end of the first quarter of 2007.

At September 30, 2006, Continental owned approximately 65,000 gross acres in the Woodford Shale Play and with the signing of this agreement Continental has dedicated approximately 23,000 gross acres to Hiland Partners. Continental currently has one operated rig working in the area and Continental expects to add a second rig in the area in December 2006.

“We believe that the construction of this initial Woodford Shale system in cooperation with the exploration activity of Continental Resources will allow us to establish a strong foothold in this developing play,” said Randy Moeder, President and Chief Executive Officer of Hiland Partners, LP. “During this quarter we have commenced operation of our expanded Badlands Gathering System, our new Matli Processing Plant, the new Kinta Compressor Station and our new Bakken Compressor Station. This Woodford Shale project is yet another example of our commitment to growing our company through organic growth.”

About the Hiland Companies

Hiland Partners, LP is a publicly traded midstream energy partnership engaged in gathering, compressing, dehydrating, treating, processing and marketing natural gas, and fractionating, or separating, natural gas liquids, or NGLs. The Partnership also provides air compression and water injection services for use in oil and gas secondary recovery operations. The Partnership’s operations are primarily located in the Mid-Continent and Rocky Mountain regions of the United States. Hiland Partners, LP’s midstream assets consist of thirteen natural gas gathering systems with approximately 1,800 miles of gathering pipelines, five natural gas processing plants, three natural gas treating facilities and three NGL fractionation facilities. The Partnership’s compression assets consist of two air compression facilities and a water injection plant.

Hiland Holdings GP, LP owns the two percent general partner interest, a 57 percent limited partners interest, and the incentive distribution rights of Hiland Partners, LP.

This press release may include certain statements concerning expectations for the future that are forward-looking statements, including the capital investment required to construct the new system and the expected capacity of the system. Such forward-looking statements are subject to a variety of known and unknown risks, uncertainties, and other factors that are difficult to predict and many of which are beyond management’s control. For example, the cost to expand the system may exceed expected costs, if Hiland Partners’ assumptions as to construction costs or other factors are incorrect or as a result of other events that are beyond Hiland Partners’ control. An extensive list of factors that can affect future results are discussed in the Partnership’s Annual Report on Form 10-K and other documents filed from time to time with the Securities and Exchange Commission. The Partnership undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.