Undeveloped secondary recovery acquisitions can be financed
Charts and tables show estimated and actual performance exhibited by 3 waterflood projects which were acquired, before development, under a financed ABC production payment transaction. In each case, waterflood operations are being conducted on a single reservoir. As in any lending operation, a bank must and will review carefully all aspects of any collateral which is to be used to secure a loan. The principles are the same regardless of the nomenclature used in describing the property that provides the collateral. Any gas and oil purchaser whose credit worthiness, operating ability, and financial condition are such as to merit consideration for bank credit may be assured that the total value of his available collateral will be reviewed by the lender. This means reserves of all types, including those associated with undeveloped fluid injection projects.
- OSTI ID:
- 6649339
- Journal Information:
- World Oil; (United States), Journal Name: World Oil; (United States) Vol. 161:4; ISSN WOOIA
- Country of Publication:
- United States
- Language:
- English
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