Description

Experienced management team seeking $15MM TO $20MM , 24 month term loan to re-commission their natural gas pipeline and re-start 1,000+ shut-in completed, non-depleted O&G wells There is currently over $5MM EBITDA from oil production, even with the vast majority of wells shit in. Loan would have first secured position on selected assets and could have a very substantial overriding royalty bonus in addition to generous loan interest. Assets include 300+ miles of gas pipeline held under non oxygen pressure with cathodic protection, ready to re-start. Pipeline has a Hot tap connection to one of the major trans continent gas pipelines. Additional unencumbered assets include a 10,000 acre irreplaceable pipeline right of way with adjacent 100,000+ free and clear mineral acres with 1,000+ shut-in non-depleted tri producing wells holding oil, NGLs and natural gas. Assets are unencumbered and debt free with the exception of some leased equipment. Very low lifting costs for oil and gas since well are already completed and the pipeline company also owns the wells and production company.

Collateral Assets: Free and clear pipeline with management valuation over $1B plus 1000+ of existing wells with $8 billion+ recoverable reserves. Shut in wells produce Oil, gas liquids and natural gas. None depleted. Gas production shutdown, however, currently producing oil income of $5MM+ EBITDA

Additional cash flow projection: $3MM+/day revenue ramp from oil/gas and gas liquids when pipeline fully operational. Major energy company agreement in place to purchase all pipeline output.

Information package available to qualified lender. Opportunities for additional investment in this large scale natural resource opportunity are available.

Posted Jun 9, 2016

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