CALGARY, Alberta–(BUSINESSWIRE)–lnclusive Energy Ltd. (“Inclusive”), a leader in the oil and gas equipment services sector, is pleased to announce the ongoing creation of multiple high impact strategic partnerships over the past few months, which has included the closing of milestone financings with a number of substantial Canadian oil and gas producers. The partnerships with these companies marks additional underwritings for Inclusive in the upstream market and is a continuation and further validation of lnclusive’s proven, successful investment platform.
As a true believer and supporter of the local energy space, Inclusive has created an investment fund with a mandate to invest with experienced executive teams with proven track records of adding value through accretive asset growth. The recent transactions are with companies which have a deep inventory of drilling opportunities and land holdings in the western provinces, which will be developed with significant capital programs in the coming quarters. Inclusive’s investment with these companies will assist in accelerating production and realizing upside potential, offering a compelling growth profile. Under its partnership arrangements, in addition to providing equity investment in the early stages, Inclusive will be a key provider of oilfield equipment to all of the companies as they deploy capital towards their asset bases.
The financing and partnership transaction with one of these companies, Heartland Oil Corporation, was recently closed. Heartland has a production base of 1,000BOE/day from its current inventory of high quality, mainly operated assets located in Saskatchewan and Alberta. Under the innovative financing arrangement with Heartland, Inclusive has provided a lending facility in exchange for royalty interests, which are production volume based and only apply during a limited time frame. The capital provided will be directed towards consolidation of shareholder equity and development of the company’s operated properties, allowing Heartland to accelerate growth and maximize returns by taking advantage of higher commodity prices.
With its ongoing investments in both public and private companies in the upstream sector, Inclusive is continuing to build its portfolio of well-managed companies and establish its market presence as a provider of capital solutions for the junior upstream sector, focused on value creation. Inclusive Energy, and its global financial partners, are actively seeking upstream investment and lending opportunities in energy companies, projects and assets which offer a strong financial return and growth potential with a sustainable ESG commitment.
The funding investments by Inclusive complement its existing oilfield equipment business and the partnerships offer unique synergies and efficiencies for the producing companies to deploy capital and unlock the vast potential of their assets. Bilal Hydrie, President and CEO of Inclusive Energy commented on his Company’s latest partnerships and on the advantages of energy companies working with Inclusive, “We are excited to see further evolution and proof of concept of our innovative partnership model, providing both capital funding and equipment services to companies creates a natural strategic alignment. Inclusive is pioneering a holistic and sustainable partnership approach, targeting producers that want to implement a true growth strategy and recognize the advantages of leveraging their assets. These companies are reaping the rewards of access to capital and Inclusive is here to provide significant private capital funding, unique financing and debt solutions.”
The management team of Inclusive Energy has decades of specialized experience in the financial, banking and energy sectors, focusing on resource development and value creation. Inclusive Energy is part of the Habib Group, a global leader across a wide range of industries ranging from Banking and other financial services to manufacturing of commodities and biofuels.
With a small team of industry experts and immediate capital available, Inclusive can be nimble, provide quick turnaround times and flexible financing arrangements. Michael Kryczka, Vice President, Corporate Development of Inclusive Energy emphasized on the advantages of energy companies aligning with Inclusive, “I encourage oil and gas producers to reach out to Inclusive. With our deep-rooted banking background, we understand the risks and challenges facing producers in an environment where traditional capital sources are scarce. We strongly support the local market and are committed to helping these companies to optimize production and develop their projects to create value for shareholders.”
Mr. Kryczka re-iterated his enthusiasm for investing in the Canadian energy sector and that Inclusive is well-positioned in an opportunity rich market for new partnerships, “Despite uncertainty in the global economy and perceived regulatory and policy risk at home, we believe the underlying market fundamentals are positive. However, capital for junior oil and gas companies continues to be very tight, as banks and traditional lenders turn their backs on the small producers, leaving them financially stranded. Inclusive is accessing its global investor base and is here to fill this niche market and invest in skilled management teams – supporting these companies with innovative local solutions. “
Inclusive Energy offers a broad range of flexible, creative and accretive financing alternatives to assist companies or projects with capital requirements. Inclusive can invest at the corporate level or through direct participation in assets/projects via joint ventures, farmins or royalty arrangements.
Inclusive Energy’s capital investment fund complements its existing oilfield service business, where the company has established itself as an industry leader, focused on delivering the highest standard of customer service, quality, and value to its clients. Inclusive offers flexible payment options to industry on an extensive inventory of equipment including storage tanks, separator vessels, line heaters, rig matts, compressors, pumpjacks and trailers.
For further information about Inclusive Energy and to explore potential investment and partnership opportunities, please contact us, we can be reached at Inclusive Energy.