GE Energy Financial Services, a unit of conglomerate General Electric Co., will partner with GeoResources Inc. to invest up to $90.5 million to acquire and develop oil and gas reserves in Oklahoma, the companies said Monday.
GeoResources, an exploration and production company based in Houston, will partner with the GE unit for a third time. The new partnership, called OKLA Energy Partners, LP, to acquire 82 percent of the assets from a group of private sellers.
The deal includes over 200 producing wells in Oklahoma and more than 90 locations mostly classified as proved undeveloped.
Both companies agreed to acquire the reserves for $60.5 million and invest up to $30 million to develop more reserves.
The Oklahoma properties bring long-lived gas reserves and a large drilling inventory to our portfolio, establishing a significant footprint in Oklahoma for future expansion, said Frank A. Lodzinski, Chief Executive Officer of GeoResources.
The acquisition is expected to close this month.