RE: Farm-Out or Dilution27 Feb 2026 08:10
For an asset producing 300 barrels of oil per day (bopd), a Reserve-Based Lending (RBL) facility is sized primarily by the Net Present Value (NPV) of the projected future cash flows from your oil and gas reserves, rather than just current production volume.
www.scor.com
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Key Mechanics for a 300 bopd Asset
Borrowing Base Calculation: Lenders use a "borrowing base" to determine your credit limit. This is a dynamic metric updated periodically (usually every six months) based on updated reserve reports, commodity price forecasts (the "price deck"), and operating costs.
Production vs. Reserves: While 300 bopd provides the immediate cash flow for repayment, the loan size is underpinned by your proven (P1) hydrocarbon reserves.
Repayment Structure: The facility is typically repaid using proceeds from sales in the field. RBLs often have a legal maturity of 5–7 years, with amortization starting after 1–2 years.
Due Diligence: To secure the loan, you must provide independent engineering reports to validate reserve estimates and operational capacities.