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VPP Funding Available! ($1MM-$10MM) Oil, Gas & NGLs – Update
“Financing secured by proved producing oil reserves in the United States. Advances are available for operated, non-operated, royalty interests and acquisitions. Advance payment for a fixed quantity of oil to be produced and delivered over a specified period of time (36 to 42 months) secured by a pledge over PDPs. Transactions are expeditiously evaluated and closed.”
- You are selling a portion of your production to be delivered over an agreed schedule (usually 36 months) at a discount to current WTI market spot price. After the oil you have sold is delivered you retain 100% ownership of your production. PPF only buys oil and you retain proceeds from sale of any gas.
Use of Funds
- No restrictions on the use of funds.
- There is no capability for a lender to “call” the proceeds we give you, unlike a typical loan.
- Our structure will compete favorably to bank loans of the same amount.
- A tremendous acquisition tool. We can normally provide 65% to 80% of the cost of acquiring production and at the end of the term of our agreement you will own 100% of the production.
- There is no personal guarantee or cross collateralization required.
- The procedure of “delivery” is exactly the same as you are now doing…the first purchaser will handle the payment aspects of the transaction and there will be no additional burdens on your own staff.
Information Needed for a Quote
- To give you an indication of the funds we can provide you we only need the following:
- Net forecast production for 2016, 2017, 2018, 2019 for both oil and gas.
- Production must be based on wells producing now, not based on expected future PUD.
- We need to know your “basis” versus WTI – what do you net after quality and transportation costs versus WTI prices.
- Quick response times, from the day we get the information we need until closing is normally 30 days but could be shorter.
- A portion of your production can provide additional tax benefits.
- You retain depletion and other tax benefits.