The proceeds of the Vermilion Cliffs loan were used to acquire a 30-well package in the Permian Basin, Anvil Capital said. (Source: Hart Energy/Shutterstock.com)
Vermilion Cliffs Partners closed a multimillion-dollar financing to fund an acquisition in the Permian Basin, where the Fort Worth, Texas-based company’s position is focused.
The financing was comprised of an $11 million senior loan facility provided by Anvil Capital Partners. The New York-based private lender announced the loan on Aug. 12 along with the closing of a $35 million financing provided to Samson Oil & Gas Ltd.
An ongoing mandate by E&P investors for greater capital discipline has increasingly allowed Anvil to step in to provide producers with a possible capital solution, according to James Avery, a partner with the private credit special situations lending firm.
“We are excited to help our new customers meet their continued and increasing demand for stretch-[reserve-based lending] structures in this capital-constrained environment,” Avery said in a statement on Aug. 12. “We look to solve the gap between bank lenders, which have largely pulled back from the micro- and mid-cap market, and the typically more expensive mezzanine and preferred equity providers.”
The proceeds of the Vermilion Cliffs loan were used to acquire a 30-well package with an ancillary development tranche for future drilling. Founded by seasoned industry veterans Jeff Cook and Toby Darden, Vermilion Cliffs holds a 78,000-acre position in the Permian Basin, according to the company’s website.
Meanwhile, Anvil said the Samson transaction refinanced a $24 million outstanding reserve-based lending facility. The remaining $9.5 million from the financing will go toward balance sheet and asset development by the North Dakota operator based in Australia.
The financings, worth a combined $46 million, were invested out of the firm’s initial $150 million Anvil Energy Partners I fund. Anvil continues to seek strong sponsor partners with deep knowledge in the upstream E&P space who require acquisition, refinance and development capital for producing assets, according to Avery.
“We believe our ability to stretch lend up to 100% of PDP PV-10 makes us an extremely competitive alternative to other sources of capital while maintaining a comfortable pricing level for the company tailoring the cost to fit production and cash flows as we did with Samson and [Vermilion Cliffs],” he said.
Recommended Reading
Pitts: Is the Permian-Mexico-Asia Gas Route at Risk?
2024-09-11 - Delayed construction of Mexican LNG projects hinders U.S. producers’ ability to improve access to thriving markets.
No End in Sight: Biden’s Pause Has Far-reaching Consequences
2024-09-17 - Biden’s LNG pause is raising costs for LNG export projects, and its effects are far and wide in the U.S. LNG industry.
Ryan Lance: ConocoPhillips Wants to ‘Double’ LNG Project Portfolio
2024-09-20 - ConocoPhillips aims to ingrain itself into the global LNG ecosystem, from shale gas output at the wellhead to liquefaction to shipping to regasification in Europe and Asia, CEO Ryan Lance said.
Mexico Pacific’s Saguaro: LNG’s Quicker Route to Asian Markets
2024-11-19 - Mexico Pacific’s 30-mtpa Saguaro LNG terminal promises a connection to Asia for Permian Gas that avoids the Panama Canal.
Court Petitioned to Intervene in Calcasieu Pass 2 LNG Project
2024-09-09 - The D.C. Circuit is to consider the case for Venture Global's Calcasieu Pass 2 LNG facility in Louisiana.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.