PRE Resources, GE Unit, Partner to Buy Rocky Mountain Oil & Gas Reserves
Expanding their Rocky Mountain oil and gas reserves footprint, PRE Resources, Inc. is teaming up with GE Energy Financial Services, a unit of GE (NYSE: GE), to buy more than 100 producing wells and undeveloped acreage across 29 fields in Wyoming and Colorado.
GE Energy Financial Services provided $46 million and committed to additional capital expenditures to form a partnership with Denver–based PRE Resources to buy the fields spread across Weston, Campbell, Crook, Niobrara and Hot Springs counties, WY, as well as Moffat County, CO. The seller was undisclosed. PRE Resources is investing $5 million in the acquisition and will serve as general partner and operator, with GE Energy Financial Services serving as limited partner. The fields feature primarily long–lived oil reserves on nearly 18,000 net acres.
"This partnership with GE will enable us to enhance the assets' production, implement low–risk secondary recovery programs and generate new drilling," said Mark A. Erickson, PRE's Chairman and CEO. "We are combining PRE's technical and operating experience in the Powder River with GE Energy Financial Services' technical and risk expertise and capital to set the stage for generating attractive returns."
Since 1991, GE Energy Financial Services' Oil and Gas team has provided more than $3.6 billion in partnership equity for its independent private and public oil and gas partner–operators 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 24 partnership investments own interests in more than 3,500 wells that produce an estimated 26,000 barrels of oil equivalent daily.
"This transaction executes on our strategy of acquiring conventional, long–lived, producing assets that should generate a robust current yield with upside potential from drilling, development and operational enhancements," said John Schaeffer, managing director and head of the oil and gas unit at GE Energy Financial Services.
About PRE Resources, Inc.
Denver–based PRE Resources, Inc. is a privately held independent oil and gas company engaged in the exploration, exploitation, acquisition and production of crude oil and natural gas in the United States. The Company's core areas include Wyoming's Powder River and Greater Green River Basins; the Michigan Basin in Northern Michigan, California's Ventura Basin and the Williston Basin of North Dakota. PRE focuses principally on optimizing production in its oil projects where it operates over 150 wells as part of the GE Energy Financial Services partnership. PRE has further exposure to low–risk development drilling for natural gas in Wyoming's Jonah Field. Please visit www.preresinc.com for additional information.
GE (NYSE: GE) is an advanced technology, services and finance company taking on the world's toughest challenges. Dedicated to innovation in energy, health, transportation and infrastructure, 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.
Mark A. Erickson
Chairman and CEO
GE Energy Financial Services