DIRECT INVESTMENTS

Well Completion Funding for Oil & Gas Operators

In response to the oil and gas industry’s need for deleveraging and accommodative growth capital, Enstream Capital is providing an alternative capital solution that enables operators to develop lower-risk, higher-return reserve prospects to accelerate company profitability and production growth, resulting in improved financial strength.

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Capital Solution

We enable operators to monetize non-producing leasehold through a conveyance of an adjustable overriding royalty interest (ORRI) for the purpose of converting non-producing reserves into production and cash flow.  

Key Components

Customary industry trade concepts and documentation allow for straight forward and timely transaction execution:

 

  • Operator sells ORRI in PDNP/PUD leasehold to fund recompletion/completion costs associated with a development plan

  • Initially, the ORRI gives Enstream the majority of the net revenue interest until target economic payout, reducing to a smaller percentage of the net revenue interest thereafter; Operator receives residual cash flow and substantial back-in

  • Operator retains working interests, prospect control and inventory

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Workers at Gas Plant

Benefits

Our well completion funding approach provides several attractive benefits to operators:

 

  • Preserves existing PDP and reserve upside

  • Enhances balance sheet and reserve base

  • Improves optionality to retain cash or scale development

Target Prospects

Our capital best serves operators which plan to develop prospects with the following attributes:

 

  • Mature fields with established infrastructure

  • Lower-risk, short-cycle well completions

  • Scalable development opportunities

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Contact us to discuss how we can help you . . .