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GE Energy Financial Services, Casillas Petroleum Buy Cimarex Kansas Leasehold

GE Energy Financial Services (GEFS) and Casillas Petroleum Corp. have partnered to purchase oil and gas reserves in southwest Kansas from Denver-based Cimarex Energy Co., they said Tuesday.

Financial details were not disclosed, but Cimarex may have revealed the purchase price last month (see Shale Daily, July 3).

Included in the acquisition were more than 500 producing wells spread across 14 counties in Kansas, the companies said.

In early July, Cimarex said it was selling assets in Kansas to an unnamed buyer for $138 million in a deal expected to close by the end of July. Those assets included 50 Bcfe of proved reserves and 15 MMcfe/d of production. At the time, Topeka Capital Markets analyst Gabriele Sorbara said the transaction implied a fair valuation of $9,200/Mcfe for flowing production and $2.76/Mcfe for proved reserves.

Tulsa-based Casillas will operate the properties and serve as the general partner; GEFS will be the sole limited partner and will provide both acquisition and development capital to help grow the partnership's reserves.

"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," said Casillas President Greg Casillas.

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