GE Energy Financial Services has partnered with Oklahoma-based Casillas Petroleum to buy oil and gas reserves in southwest Kansas from Denver-based Cimarex Energy, GE said Wednesday.
This is the first time the two companies have teamed up.
The purchase price and financial details of the deal haven’t been disclosed.
The assets include more than 500 producing wells spread across 14 counties in Kansas.
Kansas is located in the Mid-Continent region.
In 2011, the US Energy Information Administration estimated Mid-Continent shale gas reserves at about 60 trillion cubic feet.
Kansas has proved oil reserves of 375 million barrels.
Casillas will operate the properties and will be the general partner.
GE Energy will be the sole limited partner and will provide both acquisition and development capital to help grow the partnership’s reserves.
Casillas is a privately-held exploration and production company with more than 450 producing leases within 5 states in the Mid-Continent Region.
Ciramex has 192 producing wells in the US, primarily in the Mid-Continent and Permian regions.
Cirmaex’s Mid-Continent assets have proved reserves of 1.528 billion cubic feet equivalent and 69 net drilled and completed wells.
GE currently has 25 partnership investments and owns interests in more than 3,000 wells that produce about 11,0000 barrels of oil equivalent per day.
“Our investment with GE allows us to grow our business through a high-upside oil and gas field acquisition, while maintaining the financial flexibility to continue to drill new wells,” President of Casillas Petroleum Greg Casillas said.