GE Unit and Union Gas Invest $115 Million to Acquire East Texas and Gulf Coast Oil & Gas Reserves, Plan $29 Million More in Field Development
GE Energy Financial Services, a unit of GE (NYSE: GE), announced today it has formed a partnership with a Union Gas Corporation subsidiary and related investors to acquire oil and gas reserves from two fields in East Texas and the Texas Gulf Coast for $115 million. GE Energy Financial Services is investing $104 million as the 90 percent limited partner. Union Gas is investing the balance as the 10 percent general partner and operator. The new alliance, Union Gas Production Partners, L.P., plans to invest an additional $29 million to develop and produce proved reserves over the next two years.
Additional financial and operational details of the transaction were not disclosed.
"Our new partnership combines the Union Gas team's exploration and operating experience with the know–how and financial strength of GE," said Randy Lowry, President of Union Gas Corporation.
“Allying with a strong institutional partner allows us to accelerate the development of our reserves to grow our production and cash flow at reasonable costs.”Randy Lowry
President of Union Gas
Since 1991, the Oil and Gas unit's 16 professionals have provided $3 billion in partnership equity for its independent private and public oil and gas partner–operators in the United States. Based in Stamford, Connecticut –– with offices in Houston, Texas and Denver, Colorado –– the Oil and Gas unit is active in all major onshore basins and shallow water Gulf of Mexico. Its 22 partnership investments produce an estimated 88 million cubic feet of natural gas and 9,400 barrels of oil daily.
About Union Gas Corporation
Union Gas Corporation, based in Houston, Texas, is an independent oil & gas company that was founded in 1995. It has successfully identified and developed seven fields on the Texas Gulf Coast. Through its partnerships, it has managed the complete cycle of oil and gas properties, from the generation of 3–D seismic evaluation, identification of prospects, drilling, operation of the wells, reinvestment and divestiture.
GE (NYSE: GE) is Imagination at Work –– a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit www.ge.com
Ken Koprowski, GE Energy Financial Services