Motivated to invest $400 million in oil and gas reserves for 2005 Established track record for oil and gas investments Knowledgeable industry partner Provider of low-cost equity 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 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 GE Capital requires approval of GE Capital’s senior management. TIMING Approximately 4-6 weeks, depending on size and complexity CONDITIONS     GE Capital’s 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)