Oil and Gas Exploration/Development Financing

Oil and Gas Exploration/Development Financing

 

Possibly no other industry offers as much volatility as the oil and gas industry. But you still need funds to pay employees, cover research and development costs, Additionally, oil and gas financing includes the fact that such projects:

 

• Can be on a very large scale.
• Often take many years from inception to the point at which the end product is sold to consumers.
• Almost invariably involve government bodies.                                                                                                    
• Are subject to certain specific risks over and above those more generally found in a project financing context.

 

In view of the capital-intensive nature of oil and gas projects and the varying degrees of risk to which stakeholders are exposed (in part, depending on the stage of a project’s development and operations), equity investors typically require different sources of financing over the life of a project. Key financing options employed include:

 

• Equity sources. IPOs, cash calls (under a joint operating agreement (JOA) (see Key commercial contracts in an upstream project)), shareholder loans and share subscriptions.
• Third party financing products. Corporate loans, acquisition financing, reserve based lending (RBL), equity bridge loans (EBLs), project finance, capital markets, hybrid financings and hedging.                                                                                                                                   
• Other sources. Operational current or future cashflow and the raising of funds through asset disposal

 

Regardless of your anticipated financing source, you require investment grade collateral that will assist viable businesses/business ideas in obtaining the oil and gas financing you require. We help facilitate the oil and gas funding process with a proven method to add collateral acceptable to investors/lenders. There are thousands of other oil and gas  projects seeking financing. By engaging us you differentiate yourself from your competitors and get the ability to obtain that critical first look from investors/lenders by having sufficient collateral to protect the investment amount at a very manageable cost.

 

Please feel free to reach out to me at valentipartners@gmail.com or 718-266-3410 for more information.   

 

Dominick M. Valenti

Dominick M. Valenti
Chief Executive Officer
Valenti Partners, LLC.