Partnering for a third time, GE Energy Financial Services of Stamford and GeoResources Inc., a Houston-based exploration and production company, are investing up to $90.5 million to acquire and develop proven oil and gas reserves in Oklahoma.
“The Oklahoma properties bring long-lived gas reserves and a large drilling inventory to our portfolio, establishing a significant footprint in Oklahoma for future expansion,” said Frank A. Lodzinski, CEO of GeoResources.
GE Energy Financial Services and GeoResources formed a new partnership, called OKLA Energy Partners LP to acquire 82 percent of the assets from a group of private sellers.
A subsidiary of GeoResources will purchase the remaining 18 percent.
The two companies entered into a purchase and sale agreement with the sellers to acquire the reserves for $60.5 million and expect to invest up to $30 million to develop additional reserves.
The GE unit is investing 98 percent as limited partner in OKLA Energy Partners and GeoResources is investing 2 percent as general partner and operator.
“By again combining GE Energy Financial Services”™ financial resources and industry knowledge with GeoResources”™ demonstrated operational expertise, we expect strong results from our new high-potential reserves in Oklahoma,” said John Schaeffer, managing director and head of the oil and gas unit at GE Energy Financial Services.
The properties include more than 200 producing wells in multiple fields across Oklahoma and more than 90 drilling locations mostly classified as ”˜proved undeveloped”™.
Current production is approximately 90 percent natural gas.
GeoResources”™ ownership in OKLA Energy Partners may increase based upon the partnership”™s performance.
The acquisition is expected to close later this month.
GE partnered with the predecessor entity to GeoResources in 2003 to purchase oil and gas reserves located in Texas and the Louisiana Gulf Coast.
In early 2007, GE again partnered with GeoResources to acquire oil and gas properties in the Giddings field in Texas.
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