A Foreign Holding Company (FHC) wishes to earn a working interest in projects by using their equity to obtain financing. They will pledge their long term bonds and other securities (rated AA or better by Moody's) to underwrite funding on selected projects so that, if the project is unsuccessful, then the loss will be absorbed by the FHC. Their guidelines and procedures are as follows:

• Project size preference is $100,000,000 or larger. Minimum project size is $10 million.
• All projects must be endorsed by a geological/engineering consulting firm.
• The Project Owner must be well established both technically and financially.
• The project owner must present a project development plan, including information on the company, to the Energy Exchange.
• Once the project qualifies as a potential candidate, a Letter of Intent is signed by all parties.
• The project is endorsed by an approved engineering consulting firm.
• A funding source (i.e., a bank or corporation) agrees to fund the project, based on both the merits of the project and certain financial guarantees provided by FHC.
• The funding source places the funds into an escrow account.
• A mutually acceptable escrow agent is selected.
• Funds are released to the project based on a pre-approved draw-down schedule.
• Work on the project commences in the field.
• Production, if any, is sold at market price to an approved purchaser.
• Profits, if any, are divided as follows:
  • -1. The bank, according to a predetermined payment schedule.
  • -2. Seventy-five percent to the Funding Source until loan is paid off.
  • -3. Seventy-five percent to project owner after loan is paid off.
• If project revenues are insufficient, the bank simply sells the securities to repay the loan. - (The Project Owner is contractually exempt from making payments).
• When the bank is fully repaid, the securities are released back to FHC. 
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If you believe your project may fit the above criteria, please respond via the our contact mail form. The FHC is not in the energy business -- and they do not wish to be in the energy business. They simply want to leverage their non-liquid assets. They have selected the Energy Exchange to help them find projects that meet their criteria. Email Us.