GE Energy Financial Services has arranged a senior secured revolving credit facility for All American Oil & Gas Inc. to refinance debt and fund reserve development in the Bakersfield, Calif., Kern River Oil Field. The $200 million facility -- with a $131 million initial borrowing base -- was provided to oil and gas exploration and production company Kern River Holdings Inc., a wholly-owned subsidiary of All American Oil & Gas, Inc.
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 U.S., 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%.
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 U.K. 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 U.K. North Sea.
Cappello Global LLC acted as exclusive financial advisor to All American Oil & Gas and Kern River Holdings. Jones Day and Thompson Knight served as legal advisors on the transaction.
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