IDGC Seeks to Acquire Additional Assets in Permian Basin
IDGLOBAL Management is currently seeking additional oil and gas assets within the Permian Basin to compliment their already existing oil and gas portfolio. While securing financing during this difficult time, IDGC Management is forced to identify creative outlets to secure potential acquisitions while the price of crude is still depressed from earlier highs that have reached $147 per barrel seen in 2008 in order to capitalize on the current contango curve in the oil futures.
IDGC Management stated, "The priority to secure additional oil and gas assets within the Permian Basin is critical to our short term growth strategy. We feel that it is imperative to secure debt financing to purchase these potential acquisition for two specific reason. The first being that although debt financing will burden our balance sheet, it will also be a non-dilutive process for our IDGC shareholders. Additionally, we feel the price of crude will follow its current contango environment allowing IDGC to be in the position to capitalize on the upswing of crude pricing. This will ultimately allow IDGC to pay off debt financing in a much more time efficient manner thus aggressively tackling any debt that we secure at today’s current crude pricing."
IDGC Management further stated, "We are in the process of seeking term sheets from various debt financing sources and will communicate those terms with shareholders once we have decided on a facility that meets our Management's criteria."
As evident by the current crude pricing environment, many current acquisition opportunities exist within the Permian Basin. IDGC Management is currently working diligently to capitalize on these opportunities in order to provide potential shareholder appreciation. Once debt funding has been secured, the terms of debt as well as its source will be communicated with IDGC shareholders.