CLG Energy Finance LLC reports it has closed a $36 million financing with Carpinteria, Calif.-based NiMin Energy Corp. (Toronto: NNN).

CLG Energy Finance director Jonathan Shepko says, "This facility provides the experienced management team at NiMin the financing necessary to convert its substantial inventory of low-risk, infill proved undeveloped drilling (PUD) locations into productive assets."

NiMin will use proceeds to pay its existing short-term debt and to fund its 2010 and 2011 development capital expenditure program. The facility may be increased up to $75 million.

CLG Energy Finance is a division of Frisco, Texas-based CLG Hedge Fund LLC, an affiliate of private financial institution Beal Bank Nevada. The firm primarily focuses on debt financing in the upstream oil and gas sector.

NiMin has principal operations in the Bighorn Basin of Wyoming, the San Joaquin Basin in California and in southern Louisiana. The company has more than 27 million barrels of proved and probable reserves, 97% of which are oil.