GE Unit Expands Oil & Gas Investing - Introduces Loans for Development Drilling Unit
GE Energy Financial Services, a unit of GE (NYSE: GE), announced today that it is expanding its oil and gas reserves investing business by offering loans for development drilling. In its first transaction involving this new product, GE Energy Financial Services has made a loan to Knox Energy, Inc. –– an exploration and production company based in Columbus, Ohio –– for drilling natural gas wells in central Ohio.
Knox Energy will use the proceeds from the debt financing, for which financial details were not disclosed, to refinance its debt and provide capital to drill more shallow wells in a mature producing region.
"While we have offered reserves–based equity for more than a decade, this transaction with Knox Energy represents growth into a new area," said John Schaeffer, Managing Director and head of the oil and gas unit at GE Energy Financial Services. "This new product offers producers the ability to more efficiently develop their assets in the current lower gas price environment."
"This type of innovative financing allows us to expand our tight sands development drilling and to make future acquisitions," said Mark Jordan, Knox Energy's president.
Since 1991, GE Energy Financial Services' Oil and Gas team has provided more than $3.5 billion in partnership equity for its independent private and public oil and gas partneroperators in the United States. Based in Stamford, Connecticut – with an office in Houston – the Oil and Gas unit is active in all major onshore basins and in shallow water Gulf of Mexico. Its 22 partnership investments own interests in more than 3,500 wells that produce an estimated 26,000 barrels of oil equivalent daily.
GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, health care solutions, and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit the company's Web site at www.ge.com.
Andy Katell, GE Energy Financial Services