What we look for

Usually some PDP

• Initial collateral value comparable to first advance
• Exceptions for some projects like coal seam gas
  

Development project risk

• Significant PUD drilling opportunity; not exploration
• Also mid-stream gas assets

Total returns: Higher than bank debt, lower than equity

• Coupon usually 9% to 12%
• Royalty in adequate size to make up the difference
  

Some owner / sponsor investment

• Needs to be significant to the individuals, not to the project

Lien on the assets

• Typically first lien; will accept second lien in larger deals