COLLEGE STATION, Texas--(BUSINESS WIRE)--
GE Energy Financial Services, a unit of GE (NYSE:GE), has formed its
third partnership with a Vess Oil Corp. affiliate to purchase oil
reserves in East Texas for $108 million. The partnership is acquiring
approximately 13,000 net acres and associated Woodbine production from
an affiliate of EnerVest, Ltd. The assets are located approximately 20
miles northeast of College Station in Brazos, Madison and Grimes
counties, and the target zones are the existing Woodbine and prospective
Eagle Ford formations.
GE Energy Financial Services invested $77 million for a majority stake
and limited partner role, with a Vess Oil affiliate acquiring the
remaining interest and serving as general partner and operator.
Additional financial details were not disclosed.
The companies partnered previously to acquire reserves in Brazos County
as well as in Kansas. A separate Vess Oil affiliate is developing
Woodbine reserves in the Kurten Field, adjacent to the newly acquired
assets. The new partnership is conducting drilling and completion
operations on its first and second Woodbine wells as part of a
multi-year continuous drilling program.
"Our partnership with GE accomplishes our strategic objective of
expanding our operations in Brazos County and provides a platform for
growth through bolt-on acquisitions in this area," said Barry Hill, CEO
of Vess Oil Corp.
Commenting on the development plan, Ronnie Nutt, chief operator officer
of Vess Oil, stated, "I am eager to launch our program and look forward
to expansion opportunities predicated on demonstrable results."
Ray Edgar, a managing director and leader of the Oil and Gas team at GE
Energy Financial Services, added, "We are excited to be partnering again
with the Vess team. This transaction contributes to the growth not only
of Vess but also the seller, EnerVest, both of which have played a
significant role in our success over the past two decades."
Since 1991, GE Energy Financial Services' Oil and Gas team has provided
more than $4 billion in partnership equity for its independent private
and public oil and gas partners-operators in the United States. Based in
Stamford, Connecticut - with an office in Houston - the Oil and Gas team
is active in all major onshore basins and in shallow water Gulf of
Mexico. Its 25 partnership investments own interests in more than 3,000
wells that produce an estimated 26,000 barrels of oil equivalent daily.
About Vess Oil Corporation
Vess Oil Corporation -- based in Wichita, Kansas and with an office in
Dallas -- is an independent oil and gas company that acquires, exploits,
develops and explores for crude oil and natural gas, primarily in
Kansas, with growing operations in Texas, Montana and Oklahoma. VOC also
serves as the contract operator for the underlying properties in two
publicly traded statutory Delaware trusts, the MV Oil Trust (NYSE:MVO)
and the VOC Energy Trust (NYSE:VOC).
About GE Energy Financial Services
GE Energy Financial Services—GE's energy investing business—works as a
builder, not just a banker, to help meet the world's power and fuel
needs. We offer more than money—expertise—for essential, long-lived and
capital-intensive power, oil and gas infrastructure—GE's core business.
Drawing on GE's energy technical know-how, financial strength and risk
management, we see value where others don't and take on our customers'
toughest challenges with flexible equity and debt transaction
structures. Based in Stamford, Connecticut, GE Energy Financial Services
holds approximately $18 billion in assets. More information: www.geenergyfinancialservices.com.
Follow GE Energy Financial Services on Twitter: @GEEnergyFinServ
GE (NYSE:GE) works on things that matter. The best people and the best
technologies taking on the toughest challenges. Finding solutions in
energy, health and home, transportation and finance. Building, powering,
moving and curing the world. Not just imagining. Doing. GE works. For
more information, visit the company's website at www.ge.com.
Source: GE Energy Financial Services