Steam flooding and horizontal drilling
GE Energy Financial Services served as administrative agent and, through its GE Capital Markets, Inc. affiliate, acted as lead arranger and book runner. Additional financial details are not disclosed.
The Kern River Oil Field was discovered in 1899 and covers 10,750 acres in the San Joaquin Valley of California. It is the second largest oil field in the state and fifth largest in the US, with cumulative production exceeding 2.2 billion barrels of oil to date and current production of 70,000 barrels of oil per day. Steam flooding and horizontal drilling have made it possible to extend the life of the field, increase production and proven reserves, and enhance recovery factors to over 65 percent.
“Partnering with GE on this transaction ensured that Kern River Holdings would have the necessary capital to fund our development plans,” said the Chairman of All American Oil & Gas, Bob Morris. He added, “Through its experience and expertise in the oil and gas space and certainty of financial execution, GE has proven to be a reliable long-term partner.”
Carl Peterson, a managing director and head of energy lending at GE Energy Financial Services, said, “We are impressed with the management team and historical performance at Kern River Holdings, and look forward to helping the company grow with efficient capital solutions.”
Since 1991, GE Energy Financial Services' Oil and Gas team has provided more than $5 billion in partnership equity and debt to independent private and public oil and gas operators in the United States and the UK North Sea. Based in Stamford, Connecticut – with an office in Houston, Texas – the Oil and Gas unit is active in all major onshore basins, in the Gulf of Mexico, and in the UK North Sea.