Needed: An initial $4M unsecured line of credit for low-risk oil development
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  1. #1

    Needed: An initial $4M unsecured line of credit for low-risk oil development

    MAGE NRG LLC is a special projects company with a limited life span of about 8 years. We have located and verified 8 new oil reservoirs from the surface prior to drilling, and we have another 50 to verify with testing. We estimate that we will develop 5 million barrels of oil reserves with 15 new oil fields in 4 years, or $350,000,000+ in reserves. This is shallow (<2,500 feet) conventional drilling in the midcontinent and is considered low risk.

    We are seeking an initial line of credit of up to $4M to begin development. This would initially be unsecured but will lead to substantial in-ground assets and revenue in a short amount of time. We expect to need an additional $100M+ with about a $30M to $40M LOC over the following 3 to 4 years for development purposes. This LOC would be secured with our initial and ever-increasing in-ground assets and cash flow. We anticipate paying off the LOC by the end of Year 4 or 5.

    We are considered a startup with no revenue or current bookable assets, so traditional asset-based financing won’t work.

    Contact Patrick Sullivan
    www.magenrg.com
    psullivan01@gmail.com

  2. #2
    Senior Member Reputation points: 1755
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    Please reach out to me I am VERY interested and have some ideas! Elon Henek 1-516-236-4086.

  3. #3
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    Quote Originally Posted by MAGE NRG View Post
    MAGE NRG LLC is a special projects company with a limited life span of about 8 years. We have located and verified 8 new oil reservoirs from the surface prior to drilling, and we have another 50 to verify with testing. We estimate that we will develop 5 million barrels of oil reserves with 15 new oil fields in 4 years, or $350,000,000+ in reserves. This is shallow (<2,500 feet) conventional drilling in the midcontinent and is considered low risk.

    We are seeking an initial line of credit of up to $4M to begin development. This would initially be unsecured but will lead to substantial in-ground assets and revenue in a short amount of time. We expect to need an additional $100M+ with about a $30M to $40M LOC over the following 3 to 4 years for development purposes. This LOC would be secured with our initial and ever-increasing in-ground assets and cash flow. We anticipate paying off the LOC by the end of Year 4 or 5.

    We are considered a startup with no revenue or current bookable assets, so traditional asset-based financing won’t work.

    Contact Patrick Sullivan
    www.magenrg.com
    psullivan01@gmail.com
    Hello,

    Please contact me.

    Thank you,


    Lily Taylor,

    Funding Specialist


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