Production Lending Funds Activity In East Texas Field

摘要

HOUSTON-Production Lending says it closed and funded a $4.5 million loan to a private producer backed by Chahta Equity Partners. The lender relates the loan proceeds will be used to acquire nonoperated interest in the Raccoon Bend Field in Texas and to pay drilling and completion costs. Racoon Bend is a salt dome near the Brazos River in Austin and Waller counties. It has produced 113 million barrels of oil since its discovery by Humble Oil in the late 1920s and still produces 800 barrels a day, Production Lending describes. The capital provider says it structured the investment as a short-term bridge loan at Chahta's request to provide the flexibility to refinance with conventional bank debt at any time.