Isramco to Buy Interests in Properties

The deal mainly includes operated oil and natural gas properties in about 40 fields in Texas, New Mexico and Oklahoma. The effective date of the deal is Jan. 1, 2008, and it is expected to close in March.

Net daily production is about 600 barrels of oil and 3.5 million cubic feet of natural gas. Total net proved developed producing reserves are about 2.7 million barrels of oil and 14 billion cubic feet of natural gas, the companies said.

Isramco said it expects to fund up to 5 percent of the purchase price with working capital and obtain third-party loans to fund the rest.

In connection with the deal, the Bank of Nova Scotia agreed to provide or arrange a secured revolving credit facility that will allow Isramco to initially borrow up to $54 million, Isramco said.

GFB Acquisition is a Texas-based based operator of oil and gas properties. It was formed in a partnership with GE Financial Services to acquire and exploit properties in North American onshore oil and natural-gas basins.

Isramco shares fell $4.64, or 9.9 percent, to close at $42.43.