2008-10-21-2008-06-02-2008-06-26

Acquired 200+ producing wells in multiple OK fields.

GE Energy Financial Services, Stamford, Conn., a unit of GE, (NYSE: GE) and Houston-based GeoResources Inc. (Nasdaq: GEOI) plan to acquire proven, producing oil and gas reserves in Oklahoma from privately owned B&W Operating LLC for $60.5 million. The companies formed Okla Energy Partners LP to acquire 82% of the assets and a subsidiary of GeoResources will purchase the remaining 18%. The GE unit is investing 98% as limited partner in Okla and GeoResources is investing 2% as general partner and operator. GeoResources may increase its ownership based on performance. The assets include more than 200 producing wells in multiple fields across Oklahoma and more than 90 drilling locations mostly classified as proved undeveloped. Current production is approximately 90% gas. GeoResources chief executive Frank A. Lodzinski says, "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." "By again combining GE Energy's financial resources and industry knowledge with GeoResources' demonstrated operational expertise, we expect strong results from our new high-potential reserves in Oklahoma," says John Schaeffer, managing director and head of the oil and gas unit at GE Energy. The companies expect to invest up to $30 million to develop additional proved reserves. The closing is expected in June. GeoResources focuses in the Southwest and Gulf Coast, Midcontinent, Williston Basin and Rocky Mountains.