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What if the Oil Business did this?...

What if the oil and gas industry could find capital without giving up large chunks of equity, dancing to a banker's tune or having to go out and raise capital in non-conventional methods?

What if the price of oil didn't play havoc with every financing decision made?  Who can call the floor on prices?  Oil executives are handcuffing themselves to believe that higher prices are coming, try to second guess the market and are hamstrung by the proverbial 'paralysis by analysis.'

What if we didn't see the decline in prices impacted by computer-driven models?  What if the true value of oil and gas were represented by real time trading and fundamental factors versus declines that were more technical in nature?

What if producers that have capital needs could have their production bought over a three to four year time frame and have that oil or gas paid for up front to generate the much needed capital they seek?

What if there would be someone out there to absorb this 'time-risk' for a term and get the producer the money they need for re-works, PUD drilling, debt pay-down etc.?

What if the producer had the capability of getting this capital off balance sheet, non-recourse, no debt and no equity relinquishment?  What if there were tax benefits thrown in as well?

What if the producer maintains total control and participates in 100% of the upside by using this capital?

What if the biggest risk in the transaction was delivery risk?

What if the capital was easy to access and could close the transactions in 45 days or less?

What if we talk about this?

 



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What if Humanity did not lust after power and money.....  Is essentially what this drivel is saying.  Reason people want equity stake for capital is because they want CONTROL.  Because they all think they know better than YOU, or just want the POWER.  They think if they have money(hard work, inherited, or someone else's AKA investment portfolios), they are superior.   It is how humanity is wired. 

Yes, world would be wonderful if it was a Utopia.  It is not and never will be. 

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Hey mate, you've 'lost the plot' on this blog...

The context of this was to ask a question in the reverse: "What if..?"

Meaning that there are ways for the oil and gas industry, as they raise funds, have a method to not give up equity to raise capital no rgo into debt as well to do so.

Apparently, you're not in the upstream oil industry or you would have clearly understood this 'drivel'.

Thanks for your input sir.

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On 2/27/2019 at 8:30 AM, BlackLine Resources said:

Hey mate, you've 'lost the plot' on this blog...

The context of this was to ask a question in the reverse: "What if..?"

Meaning that there are ways for the oil and gas industry, as they raise funds, have a method to not give up equity to raise capital no rgo into debt as well to do so.

Apparently, you're not in the upstream oil industry or you would have clearly understood this 'drivel'.

Thanks for your input sir.

It’s a moot point. You can’t get something for nothing. Ask all of those millenials that took out trillions of dollars in unsecured student loans when they should have been getting jobs and starting careers.

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On 2/27/2019 at 6:30 AM, BlackLine Resources said:

Hey mate, you've 'lost the plot' on this blog...

Drivel...

Thanks for your input sir.

Hey mate, people do not give money away for free.  Shocker huh?  Who knew.  There is no way in Hell I am going to loan money to someone without guarantees and a major stake in a business.  This guarantees that the business receiving the money is not actively looking to screw me because by doing so they screw themselves. 

In your world, financiers are supposed to be utopian fools.  Hey, go for it big boy, invest in China or some fly by night shale "upstream" business here in USA.  Implement your "world-view", see how long you have a dollar left.  I'll bet less than a couple months when the money "mysteriously" disappears and the business "oddly" vanishes, but there is this very "new" competitor next door making the exact same widget doing quite well...

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Wastral, apparently you don't have a clue as to how Volumetric Production Payments work... nobody is giving anything away for 'free'.. certainly not us, I think we're a little more clever than the 'world view millennials' you seem to think we are.  Between the five of us, we have over 100 years of oilfield and structured finance experience.

I'm not really sure who you're addressing in your screed, but I'll assure you, 'In our world..' we have been funding oil deals for probably longer than you've been alive.  If you were to simply ask me how these work, which, by the way, actually pre-dates conventional oil funding, I'll be happy to oblige you.

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There is always easy money to be found if investors think your a low cost producer or have the potential to become one. If indeed you become a low cost producer there will be room in the market as a higher cost producer will be pushed out over time. 

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