WELL COMPLETION FUNDING
Non-Dilutive Capital to Bring Your Reserves into Production
Enstream funds up to 75% of your development capex through a perpetual ORRI conveyance with a buyout option. You retain full ownership, operating control, and leasehold. The result: proved reserves converted to production, stronger collateral value, and enhanced profitability—without equity dilution.
How it Works
Step 1
Step 2
Step 3
Submit Proposal
Execute LOI
Plan Approval
Enstream reviews the development plan, lease operating statements, and reserve engineering to confirm fit.
Sign an LOI and begin technical and financial due diligence.
Finalize project scope and execution parameters.
Step 4
Step 5
Step 6
Documentation
Prepare definitive agreements using standard industry documentation.
Fund Escrow
Close the transaction; escrowed proceeds fund the approved development plan.
Execute Plan
Deploy capital and convert reserves into production under the ORRI structure.
Key Terms
Capital Split
Up to 75% funded by Enstream, 25% by operator
Revenue Allocation
ORRI receives 55–75% of revenue until payout
Payout Target
​200–225%, then step-down
Tail ORRI
​1–15% of NRI in perpetuity post-payout
Buyout Option
Operator buyout option available after payout
​​ORRI purchased at closing; proceeds escrowed for development
Escrow
Target Prospect Characteristics
-
PDNP/PUD reserves with offset production and engineering support for underwriting
-
Mature fields with existing infrastructure and takeaway
-
Clear development plan with defined scope, schedule, and budget
-
$3–$30 million capital need
-
Target ROI: ~2.25–2.75x net
-
Aligned operator terms with co-investment and buyout option
Operator Benefits
-
~90-day close: Secure capital for completions when it matters
-
Non-dilutive: Preserve ownership, governance, and operating control
-
Bank-friendly: Standard ORRI documentation supports efficient diligence
-
Value creation: Convert lower-risk reserves to production, strengthen collateral value and balance sheet
