NEW YORK & HOUSTON--(BUSINESS WIRE)--GeoSouthern Energy Corporation and Blackstone (NYSE: BX) today announced the closing of a ~$1.0Bn borrowing base facility. Proceeds from the facility will be used to continue the development of GeoSouthern’s 173,000 gross acre position in the condensate and oil windows of the Eagle Ford shale play. When combined with prior equity and debt financings, this financing will result in the Company being fully financed and self-funded for its capital expenditure and investment programs. "This transaction, together with our partnership with Blackstone, ensures that the Company has the right capital base and support to continue to fuel the long-term future growth and development of our Black Hawk field in the Eagle Ford, as well as the Company's other assets" said GeoSouthern Founder and CEO, George Bishop.
Funds from the credit facility will primarily be used to fund and develop the Company’s 50% working interest in the “Black Hawk” field. The Blackhawk field is a 105,000 gross acre, 50 / 50 joint venture in DeWitt and Karnes Counties, Texas. This unique venture allows their partner to drill and complete new wells while GeoSouthern operates all post-drilling and completion activities including managing production. Funding will also be used to develop the Company’s approximate 68,000 acre position (100% owned and operated) in Gonzalez, Lavaca and Fayette Counties, Texas.
Established in 1981, GeoSouthern is a privately owned, independent exploration and production company based in The Woodlands, Texas. The Company focuses its efforts in Texas, and in addition to the 173,000 gross, 120,500 net acres it has in an attractive portion of the Eagle Ford trend, GeoSouthern owns and operates substantial acreage positions in the Giddings Austin Chalk Field, the Brookshire Dome Field, and the Austin Chalk in East Texas.
Blackstone is one of the world’s leading investment and advisory firms with total assets under management of $160 billion. Blackstone seeks to create positive economic impact and long-term value for its investors, the companies it invests in, the companies it advises and the broader global economy. Blackstone does this through the commitment of its extraordinary people and flexible capital. Blackstone is an experienced and active investor in the energy sector. Funds managed by Blackstone have invested more than $5 billion of equity in the energy sector, globally, over the last decade to fund the acquisition and growth of a broad range of energy and natural resources companies, partnerships and joint ventures. Investments in energy and natural resources are funded jointly by Blackstone's Private Equity Energy Group, which is dedicated to investments in this sector, and Blackstone Capital Partners VI, a diversified general purpose private equity fund. Further information is available at www.blackstone.com.