Clayton Williams Energy, GE Energy Financial Services Acquire California and Texas Oil & Gas Properties
Clayton Williams Energy, Inc. (NASDAQ–NMS:CWEI) and GE Energy Financial Services announced today that an affiliated partnership, West Coast Energy Properties, L.P., has acquired certain producing oil and gas assets in California and Texas for $58 million.
Clayton Williams Energy has attributed estimated proved reserves totaling 4.9 million barrels of oil and natural gas liquids and 3.7 Bcf of natural gas to the acquired properties. More than 60% of these estimated proved reserves are classified as proved developed producing reserves. Approximately 75% of the purchase price relates to properties in th ree fields in southern California, and the remaining 25% relates primarily to properties located in Mitchell County, Texas.
West Coast Energy Properties, L.P. is a Texas limited partnership consisting of a limited liability company owned by Clayton Williams Energy, as general partner, and an affiliate of GE Energy Financial Services, as the limited partner. Under the partnership agreement, the general partner contributed approximately $6.2 million to the partnership for an initial partnership interest of 5%, which interest can increase to 37.63% and ultimately to 49% upon the achievement of certain target rates of return.
Clayton Williams Energy financed its equity contribution to the general partner through borrowings on its existing revolving credit facility with JPMorgan and participating banks.
Clayton Williams Energy, Inc. is an independent energy company located in Midland, Texas.
Since 1991, GE Energy Financial Services' Oil & Gas unit has provided $2.2 billion in partnership equity and $300 million in senior secured debt for its independent private and public oil and gas partner–operators. The partnerships produce more than 140 million cubic feet of natural gas and 31,000 barrels of oil per day. More information: www.geenergyfinancialservices.com.
Except for historical information, statements made in this release are forward–looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward–looking statements, including, but not limited to, production variance from expectations, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, exploration risks, uncertainties about estimates of reserves, competition, government regulation, costs and results of drilling new projects, and mechanical and other inherent risks associated with oil and gas production. These risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward–looking statements.
Director of Investor Relations
Chief Financial Officer
GE Energy Financial Services