Tell your banker to buzz off!
As lines of bank credit grow increasingly more restrictive, royalty financing offers new options for operators
It can be tough to get credit these days, especially if you're a natural gas producer. What are you going to do?
One possibility is to do what Compton Petroleum did last spring. Primarily a gas producer, the company sold a five per cent royalty interest in 19,000 barrels of oil equivalent production per day, plus a five per cent interest in 600,000 undeveloped acres to Caledonian Royalty Corporation, a company founded and managed by oil and gas financier Jim Kinnear.
