GE Farms-in to Proven New Mexico Reserves
GE Energy Financial Services has formed a partnership with TriTex Energy, LLC to acquire proved oil and gas reserves in southeastern New Mexico for $31 million. GE Energy Financial Services has invested more than $360 million in proved oil and gas reserves in five transactions this year, an annual record for the business.
GE Energy Financial Services is investing $30 million as the 98 percent limited partner. TriTex Energy, LLC is investing the balance as the 2 percent general partner and operator. The new alliance, TriTex Energy A, LP, plans to invest an additional $14 million to develop and produce proved reserves over the next two years. Additional financial and operational details of the transaction were not disclosed.
"GE was able to close this transaction in one of the most difficult banking and commodities markets imaginable. Their financial and technical strengths make them a great partner," said Don Ritter, President of TriTex Energy, LLC.
"This alliance advances our strategy of diversifying our reserve holdings into the southeastern New Mexico-West Texas region. By combining TriTex's development and operating experience with the know-how and financial strength of GE, we expect to grow our production and cash flow."
John Schaeffer, Managing Director and head of the oil and gas unit at GE Energy Financial Services, said, "This new investment with TriTex, completed in this turbulent economic environment, is another example of the unique benefits of our partnership equity structure. This is our fifth such investment in this record year for our business in which we’ve invested more than $360 million. This partnership offers an excellent growth opportunity for TriTex and GE Energy Financial Services by combining TriTex’s expertise and the attractive development prospects of these reserves."
- Rosneft Reveals New Alliance with GE (Jun 21)
- Trap Oil Agrees Debt Deal to Fund North Sea Assets (Jan 30)
- AGT: Australia's LNG Industry Lacks Engineers Over 5-Year Period (Jul 25)