MIDWAY, Utah & STAMFORD, Conn.--(BUSINESS WIRE)--Expanding its financing for oilfield services while helping overcome environmental challenges, GE Energy Financial Services, a unit of GE (NYSE: GE), announced today that it is providing a senior secured credit facility for up to $250 million to 212 Resources.
An initial $27.5 million of equipment and working capital financing will allow 212 Resources to commence processing and recycling oilfield wastewater into clean water for reuse in drilling operations at the Pinedale Anticline, the nation's second-largest natural gas field. This six-year facility allows the company the flexibility to expand its services to protect environmentally sensitive areas.
212 Resources, based in Midway, Utah, is a portfolio company of @Ventures, the venture capital fund affiliated with CMGI, Inc. (Nasdaq: CMGI). 212 Resources employs patented vapor compression flash evaporation systems. This technology separates wastewater generated by oil and natural gas exploration and production into clean water, brine, methanol and natural gas condensate. Recovering valuable by-products, while generating clean water, achieves the industry's lowest water management costs. In addition to protecting fresh water aquifers in production fields, the negative environmental impacts of trucking and impounding wastewater are reduced.
The units to be constructed under the new credit facility will be used, under a long-term contract with a major exploration and production company, to treat more than 9,000 barrels of water per day at western Wyoming sites. 212 Resources expects to significantly increase the wastewater it can treat in Wyoming fields as well as in other oil and gas producing areas across the U.S. and internationally.
"This investment taps our oilfield services, water, environmental, and debt expertise to support a proven technology that addresses economic and reclamation challenges in oil and gas production," said Matt O'Connor, Managing Director and head of debt finance at GE Energy Financial Services. "And, in the spirit of GE's ecomagination initiative, 212 Resources' well-site service enables oil and gas companies to develop reserves, reclaim and purify water, and add incremental revenue by enhancing hydrocarbon recovery." Ecomagination is GE's initiative to help its customers meet their environmental challenges while expanding its own portfolio of cleaner energy products.
"GE's commitment to funding superior water management services, its rigorous vetting of our company and technology and the size and strength of this financing package confirm our potential for rapid, sustainable growth," said Jim Schleiffarth, 212 Resources' CEO. "Saving our precious water resources, while recovering valuable byproducts generated from oil and gas drilling and production enables our customers to save money and meet increasingly stringent environmental requirements. Our team is committed to bringing the industry best available technologies and on-site services to enable the recovery of our nation's valuable energy resources while protecting the environment."
With more than 50 dedicated professionals, GE Energy Financial Services' debt finance group provides a full complement of debt products and services for the energy industry, including corporate, structured, project, acquisition and equipment financing. GE Energy Financial Services also provides debt to the water industry. Its GE Capital Markets affiliate provides arranging and syndication for many of these facilities.
About 212 Resources
212 Resources, based in Midway, Utah, is a natural resource recovery company specializing in the reclamation of valuable hydrocarbons and fresh water from oil and gas exploration and production processes. For more information, visit: www.212resources.com.
About GE Energy Financial Services
GE Energy Financial Services' 350 experts invest globally with a long-term view, backed by the best of GE's technical know-how and financial strength, across the capital spectrum and the energy and water industries, to help their customers and GE grow. With $14 billion in assets, GE Energy Financial Services, based in Stamford, Connecticut, invests more than $5 billion annually in two of the world's most capital-intensive industries, energy and water. More information: www.geenergyfinancialservices.com.
About GE
GE (NYSE: GE) is a diversified technology and services company dedicated to creating products that make life better. From aircraft engines and power generation to financial services, medical imaging, television programming and plastics, GE operates in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at http://www.ge.com.
Editor's Note: Caption for accompanying photo: GE Energy Financial Services is providing a $250 million credit facility to 212 Resources to finance its water treatment system and services for oil and gas producers. The units built under the credit facility will be used to treat water at a major exploration and production site in western Wyoming.
Contacts
GE Energy Financial Services
Ken Koprowski, 203-961-5743
or
212 Resources
Robert Waits, 435-654-9191, ext. 102
Andy Katell
GE Energy Financial Services Senior Vice President Communications
[email protected]
1-203-961-5773