GE Commercial Energy Financial Services, Strategically Expanding Reserve Base, Partners with Locin Oil Corporporation to Acquire and Develop Appalachian Gas Fields
GE Commercial Finance Energy Financial Services and Locin Oil Corporation announced today the acquisition of 96 billion cubic feet (Bcf) of net proved gas reserves for approximately $147 million. The properties were acquired from Equitable Production Company and include approximately 1,200 wells in Pennsylvania and Ohio. In addition, a total of over 220 proven and probable, low risk, undeveloped drilling locations have been identified in the fields.
Energy Financial Services holds a 95 percent limited partnership interest in NCL Appalachian Partners LP and will share in capital expenditures to develop the reserves. The principals of Locin Oil formed NCL Appalachia LLC to be the five percent General Partner and operator of the fields, which include 69 Bcf of net proved producing gas reserves. The acquisition includes the reserves and over 400 miles of related gathering systems in the Noble (Lordstown) and Cambridge fields in eastern Ohio and the Snowshoe and Grugan fields in Central Pennsylvania. The Ohio gas production is sold to contracted industrial customers in the region. The Pennsylvania production is sold through multiple sales points to four major gas pipelines accessing diverse US gas markets.
"These assets are consistent with our long–term objectives of acquiring and developing focused long–life gas in areas with well established markets," said Michael Lord and Michael Nicol, the Managers of NCL Appalachia LLC.
"Our partnership with Locin represents a dynamic growth opportunity in this geographically strategic, energy–rich region," said John Schaeffer, the Energy Financial Services Managing Director who heads its Oil and Gas unit. "Locin's industry experience, combined with GE's financial resources and industry knowledge, positions our new partnership for continued, long–term success."
Since 1991, the Oil & Gas unit's 17 professionals have 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. Based in Stamford, Connecticut, with offices in Houston and Denver, Colorado, EFS's Oil and Gas unit has more than $1.5 billion of investments with estimated daily production of 140 million cubic feet of natural gas and 31,000 barrels of oil. Visit: www.oilandgaspartners.com
About Locin Oil Corporation
Locin Oil Corporation is a privately held Texas corporation located in The Woodlands, Texas. Locin has operations in over 290 wells in seven states. Prior to this transaction, all of Locin's growth and funding has been through internally generated working capital and a senior debt facility with a Houston, Texas bank. The principals of Locin have extensive experience, associated with their existing property base and in their prior careers, operating in Appalachia.
About GE Commercial Finance and GE
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over $230 billion and is headquartered in Stamford, Connecticut. 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 peo ple worldwide. For more information, visit the company's Web site at www.ge.com.
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