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Transactions

	Historical investment in oil and gas reserves of ~$300-$400 million per year for the last several years
	Established track record for oil and gas investments
	Knowledgeable industry partner
	Provider of low-cost capital
	Structured equity provides off-balance sheet accounting treatment
	Familiarity with derivatives markets valuable in hedging price risk
	Long-term investment orientation important to building a business
	Limited Partner role leaves operational control with clients

Build diversified investment book in oil and gas reserves.			Current income
Build diversified investment book in oil and gas reserves.			Additional upside through asset plays

Develop “partnerships” with oil & gas companies to identify, evaluate and acquire/finance reserve-backed investments.			GE: Low cost of capital, variety of products, established track record and GE name
			Client: Opportunities, experienced operators and efficient exploiters

APPROVAL

Any investment by EFS requires approval of EFS senior management.

TIMING

Approximately 4-6 weeks, depending on size and complexity

CONDITIONS

EFS participation conditioned on satisfaction with the following:

	Purchase/Sale Agreement
	Partnership Agreement
	Operating Agreement (and qualifications of operator)
	Commodity Price Hedge
	Due Diligence (Engineering, Legal/Title and Environmental)