7670 Woodway Drive
Suite 200
Houston, TX 77063
Oil & Gas lending, both traditional Reserves Based Lending (RBL) and Volumetric Production Payment (VPP), Core Capital’s principals have extensive experience in the energy sector and have funded numerous transactions in a wide range of structures.
Every oil and gas royalty, lease or overriding royalty interest has its own unique characteristics which require a thorough review and study of a variety of different elements that may affect the value. When Core Capital performs its due diligence analysis prior to funding decision, we are evaluating, among other things, the following:
Individual royalty interest percentage.
Concentration risk.
Reservoir characteristics.
Historical production performance.
Oil and gas commodity pricing (NYMEX).
Future drilling potential.
Age of production equipment.
Operator reputation .
Some say oil pipelines originated when the Oil Transport Association first constructed a 2-inch wrought iron pipeline over a 6-mile track from an oil field in Pennsylvania to a railroad station in Oil Creek, in the 1860s. Core Capital views pipelines as essential assets, that if managed properly, can be a long term source of cash flow, and as such, we can evaluate and provide financing for this asset class. Core Capital has done significant work not only evaluating pipelines as assets, but also ancillary equipment such as compression equipment, pumps etc.
Sustainability, secure supply and efficiency are the watch words of renewable resources. The creation of energy that can be replaced in the same amount using equal or less time and energy than it takes to create is truly renewable, a simple definition often lost in the excitement of creating green energy . If it is solar, wind or involves the use of oil seeds to produce energy, Core Capital has experience providing capital to the producer provided the end user is a viable credit.
The drilling rig is an essential part of the oil and gas industry and is used to drill water wells, oil wells, or natural gas extraction wells. Drilling rigs can be mobile equipment mounted on trucks, tracks or trailers, or more permanent land or marine-based structures such as oil platforms, commonly called 'offshore oil rigs' even if they don't contain a drilling rig. Regardless of type and in certain geographic locations Core Capital considers the current state of use, age and operator in our valuation analysis for consideration as use as collateral.
The water injection method used in oil production is where water is injected back into the reservoir usually to increase pressure and thereby stimulate production. Water injection wells can be found both on and offshore. This method is used to increase oil recovery from an existing reservoir. Additionally, during the oil extraction process, and as a function of geography and the age of the well among other things, a significant amount of water is produced as a byproduct to oil production, that water needs to be disposed off in accordance with EPA, and potentially local government requirements and other governmental agencies. Core Capital has done a significant amount of work in both, Salt Water Disposal Wells (SWDW) as well as Water Evaporation Ponds (WEP), typically associated with CBM production sites.