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.
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.
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
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
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