CASE STUDIES
Oil & Gas Company
Borrower Profile
The Challenge
A Canadian-based private oil and gas company sought liquidity for a diverse portfolio of non-operated oil and gas working interests; however, due to the number of working interests, a relatively small well production, the existence of ROFR on select properties, and weak industry conditions at the time, the Company was unable to solicit a variety of interested buyers.
The Solution
Invico acquired a majority of the Company’s non-operated working interests with the exclusion of properties that held marginal value or excessive abandonment liabilities.
The Result
The Company achieved significant liquidity on an expedited basis for its non-operated oil and gas working interests, while Invico was able to diversify its production away from oil with the addition of predominantly gas-producing wells that provided short payback periods and a strong expected internal rate of return.