GE Energy funds oil and gas field water recycling

Stamford, Conn.-based GE Energy Financial Services said yesterday that it would provide a $250 million credit facility to Midway, Utah's 212 Resources to finance water treatment system and services for oil and gas producers.

GE Energy Financial Services is a unit of Fairfield, Conn.-based General Electric (NYSE: GE).

"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.

212 Resources plans to use an initial $27.5 million of equipment and working capital financing to start processing and recycling oilfield wastewater into clean water for reuse in drilling operations at the Pinedale Anticline.

Pinedale is the nation's second-largest natural gas field.

"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," said Jim Schleiffarth, CEO of 212 Resources.

GE Energy said the six-year credit facility would allow 212 Resources the flexibility to expand its services to protect environmentally sensitive areas.

212 Resources, a portfolio company of @Ventures, uses vapor compression flash evaporation systems, separating wastewater generated by oil and natural gas exploration and production into clean water, brine, methanol and natural gas condensate.

The units to be constructed under the new credit facility are expected to 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.