PLANO, Texas, Aug. 27 /PRNewswire/ -- CLG Energy Finance, LLC, an innovative direct loan originator that focuses on financing opportunities in the energy industry, announces financing of $28.5 million for Houston-based GeoSouthern DeWitt Properties LLC, a wholly owned subsidiary of GeoSouthern Energy Corporation.
Jonathan Shepko, a Director with CLG Energy Finance, said, "We are fortunate to have the opportunity to assist GeoSouthern with its capital needs as it continues to develop its substantial leasehold in one of the fastest-growing shale plays in North America."
Proceeds will be used by GeoSouthern primarily to fund capital expenditure requirements in the Eagle Ford Shale alongside its working interest partner, Petrohawk Energy Corporation (NYSE: HK). The facility may also be increased up to $125.0 million upon request by GeoSouthern and subject to lender approval.
The GeoSouthern financing, through CLG Energy, reaffirms CLG's commitment to lending in the oil and gas financing arena. Owen Hill, also a Director with CLG Energy Finance, added, "We arrange for development capital for solid assets supported by strong management. The agreement with GeoSouthern reflects this focus, along with an interest in the potential to grow such capital along with the growth in the asset base."
CLG Energy Finance, LLC is a division of CLG Hedge Fund, LLC, an affiliate of Beal Bank Nevada, a multi-billion dollar private financial institution. CLG Energy seeks to facilitate direct lending in energy and energy-related companies, with particular emphasis on debt financing in the upstream oil and gas sector. CLG Energy considers both traditional senior-secured structures as well as one-off, structured secured loans at the project or corporate level and will consider loans ranging from $20M to $500M.
SOURCE CLG Energy Finance, LLC