Commercial funding needed
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  1. #1

    Commercial funding needed

    A start up Company who has 2 service contact with oil companies is seeking to build a Salt Water Disposal Well to handle the oil company's need to dispose of both flowback and production water. Flowback water is generated by the hydraulic fracturing process know as Fracking when oil wells are drilled, while production water comes up along with the oil pumped to the surface by oil wells.

    The company is seeking $2.5MM to fund the construction and opening of Salt Water Disposal Well, their projected fund date is May/June 2015 and construction to start June/July and completion date with cash-flow expected October 1, 2015.


    1) Collateral 2 Master Service Contracts with the Oil Companies

    Investment Characteristics:
    1) Large Oil Company
    2) Price for service is agreed upon
    3) volume of water to be provided is consistent
    4) Will have consistent 30 day payment term for services rendered to the Oil Companies
    5) Owner and Management team has extensive Industry experience

    Repayment terms: short term financing re-payment period of 9-12 months preferred, no more than 3-5 years.

  2. #2
    Member Reputation points: 1685
    Join Date
    May 2015
    Location
    FL
    Posts
    96

    i have been wondering lately, do lenders consider fracking "high risk...?"

  3. #3
    How much are the contracts for?
    -- over how long a period?

  4. #4
    Member Reputation points: 10
    Join Date
    Sep 2015
    Location
    South Jordan, Utah
    Posts
    9

    Is the oil company in business and making money? Do they have collateral? Call me? We fund oil companies all day long.


    Quote Originally Posted by sigma94 View Post
    A start up Company who has 2 service contact with oil companies is seeking to build a Salt Water Disposal Well to handle the oil company's need to dispose of both flowback and production water. Flowback water is generated by the hydraulic fracturing process know as Fracking when oil wells are drilled, while production water comes up along with the oil pumped to the surface by oil wells.

    The company is seeking $2.5MM to fund the construction and opening of Salt Water Disposal Well, their projected fund date is May/June 2015 and construction to start June/July and completion date with cash-flow expected October 1, 2015.


    1) Collateral 2 Master Service Contracts with the Oil Companies

    Investment Characteristics:
    1) Large Oil Company
    2) Price for service is agreed upon
    3) volume of water to be provided is consistent
    4) Will have consistent 30 day payment term for services rendered to the Oil Companies
    5) Owner and Management team has extensive Industry experience

    Repayment terms: short term financing re-payment period of 9-12 months preferred, no more than 3-5 years.

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