Equus Total Return Secures Funding to Boost Drilling Efforts
Equus Secures Financing for Enhanced Operations
Equus Total Return, Inc. (NYSE: EQS) has announced a remarkable achievement in its operational journey, with its subsidiary, Morgan E&P, LLC, successfully closing a $3 million term loan facility. This funding will significantly bolster the company’s efforts in the Bakken Shale formation, specifically targeting drilling and work-over operations on its existing wells.
Purpose of the Financing
The newly acquired capital is strategically aimed at expediting the development of both operated and non-operated acreage. Morgan E&P intends to focus on optimizing current production assets while pursuing new well completions. This proactive approach is anticipated to substantially increase production volumes and enhance cash flow as operations progress.
CEO's Perspective on the Development
John Hardy, the Chief Executive Officer of Equus, expressed enthusiasm about this funding, viewing it as a pivotal first step in advancing Morgan’s activities in one of the most productive oil regions in North America. He has particularly acknowledged the contribution of Mike Reger, a recent addition to the Morgan team, for his pivotal role in securing this financing. The ability to swiftly develop their acreage and return certain wells to production is viewed as a pathway to create immediate shareholder value.
The Importance of the Bakken Shale
The Bakken Shale, predominantly located in North Dakota and Montana, is renowned for its rich crude oil reserves and long-standing productivity. Morgan E&P’s planned activities within this prime location are expected to strengthen its footprint and contribute positively to Equus’ overarching energy portfolio strategy.
About Morgan E&P, LLC
Morgan E&P, LLC is deeply vested in the upstream exploration and production sector, dedicated to developing oil and gas assets spread across North America. As a wholly-owned subsidiary of Equus, its efforts directly impact the company's growth trajectory.
About Equus Total Return, Inc.
Equus Total Return, Inc. operates as a business development company, engaging in activities as a closed-end fund listed on the New York Stock Exchange under the ticker symbol "EQS". The company is committed to driving growth and delivering value to its investors through strategic investments and operational excellence.
Frequently Asked Questions
What is the amount of the loan secured by Equus Total Return?
Equus Total Return has secured a $3 million term loan through its subsidiary Morgan E&P, LLC.
What will the proceeds of the loan be used for?
The proceeds will be utilized for drilling and work-over operations on existing wells in the Bakken Shale formation.
Who is the CEO of Equus Total Return?
John Hardy serves as the Chief Executive Officer of Equus Total Return, Inc.
What significance does the Bakken Shale hold for oil production?
The Bakken Shale is recognized for its substantial crude oil production and longevity in reserves, making it a key area for exploration and development.
How is Morgan E&P related to Equus Total Return?
Morgan E&P, LLC is a wholly-owned subsidiary of Equus Total Return, focusing on the exploration and production of oil and gas assets.
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