GE and Vess to acquire US oil reserves from EnerVest

GE Energy Financial Services has joined forces with a Vess Oil affiliate to acquire oil reserves in east Texas, US, for approximately $108m.

The partnership will acquire around 13,000 net acres and associated Woodbine production from an EnerVest affiliate in the region.

The assets are situated around 20 miles northeast of College Station in Brazos, Madison and Grimes counties, while the target zones include the existing Woodbine and prospective Eagle Ford formations.

GE invested $77m for a majority stake, while the Vess Oil affiliate has acquired the remaining interest in the assets and serves as operator.

The companies also partnered to acquire reserves in Brazos county and Kansas, while a separate Vess Oil affiliate is developing Woodbine reserves in the Kurten Field, adjacent to the newly acquired assets.

Vess Oil CEO Barry Hill said: "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."

GE Energy Financial Services managing director and oil and gas team leader Ray Edgar said: "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."

The GE Energy Financial Services oil and gas team has provided approximately $4bn in partnership equity for its independent private and public oil and gas partner-operators in the US since 1991. Vess Oil explores for, acquires, exploits and develops crude oil and natural gas, primarily in Kansas, with growing operations in Texas, Montana and Oklahoma.