GE Unit and GeoResources Investing Up to $91 Million in Oklahoma Oil & Gas Reserves
Partnering for a third time, GE Energy Financial Services, a unit of GE (NYSE: GE), and GeoResources, Inc. (NASDAQ: GEOI), a Houston–based exploration and production company, are investing up to $90.5 million to acquire and develop proven producing oil and gas reserves in Oklahoma.
GE Energy Financial Services and GeoResources formed a new partnership, OKLA Energy Partners, LP, to acquire 82 percent of the assets from a group of private sellers. A wholly owned subsidiary of GeoResources will purchase the remaining 18 percent. The two entities 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 proven reserves. The GE unit is investing 98 percent as limited partner in OKLA Energy Partners and GeoResources is investing two percent as general partner and operator. GeoResources' ownership in OKLA Energy Partners may increase based upon the partnership's performance. The acquisition is expected to close later this month.
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. Additional financial and operational details of the transaction were not disclosed.
"This transaction is consistent with GeoResources' business strategy, which focuses on building reserves, production, cash flows and earnings and on expanding our acreage, development opportunities and exploration inventory," said Frank A. Lodzinski, Chief Executive Officer of GeoResources.
“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.”Frank A. Lodzinski
Chief Executive Officer of GeoResource
"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.
Since 1991, GE Energy Financial Services' Oil and Gas team has provided more than $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 and Denver, Colorado – the Oil and Gas unit is active in all major onshore basins and in shallow water Gulf of Mexico. Its 21 partnership investments own interests in 8,200 wells and produce an estimated 21,350 barrels of oil equivalent daily.
About GeoResources, Inc.
GeoResources, Inc. is an independent oil and gas company engaged in the acquisition and development of oil and gas reserves through an active and diversified program which includes purchases of reserves, re–engineering, and development and exploration activities, currently focused in the Southwest and Gulf Coast, Mid–continent, Williston Basin and Rocky Mountains. For more information, visit our website at www.georesourcesinc.com.
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
Information herein related to GeoResources, Inc. contains forward–looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate," "estimate" or "continue," or comparable words. All statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward–looking statements. Readers are encouraged to read the SEC reports of the Company, readers are encouraged to read our Annual Report on Form 10–KSB/A for the year ended December 31, 2007, and any and all other documents filed with the SEC regarding information about GeoResources for meaningful cautionary language in respect of the forward–looking statements herein. Interested persons are able to obtain free copies of filings containing information about GeoResources, without charge, at the SEC's Internet site (http://www.sec.gov).
Cathy Kruse Tel: +1 701 572 2020, ext 113 Email: email@example.com