Digital Finance: Water Pipeline Serving Bakken Shale

Mezzanine debt financing for Regional Water Service (“RWS”), serving the hydraulic fracturing process in the Bakken Shale region of North Dakota, will be open to investors in early July.

This loan facility will be made from a Limited Partnership which will be tokenized and settled physically or as a digital financial instrument.

Key deal points include:

  • RWS provides water to oil and gas producers both for
  • initial drilling as well as
  • years of production.
  • Investors’ proceeds will
  • finance expansion of the pipeline and
  • greatly reduce COGS & operating expense and improve RWS profitability
  • Investors may expect a holding period 12 to 24 months with the investment refinanced by a senior lending facility.
  • Global energy demand is expected to increase by 25% by 2040 with a majority expected to be supplied by US shale producers. The US water market is estimated to be $22.5 billion in 2019 and may grow even faster than overall production as increasing amounts of proppant are used to increase immediate and long-term production per well.
  • RWS water pipeline is more sustainable: For a typical well the pipeline can replace nearly 1,920 truck trips across nearby roads in the drilling phase alone.
  • RWS has unique barriers to entry and competitive advantage in its
  • sourcing permits &
  • rights of way, &
  • system of reservoirs
  • RWS is lead by a management team with a proven track record of starting, developing and exiting water delivery businesses.

A deal sheet will be posted at inveniam.capital in July.

Please contact at deals@inveniam.capital if you are interested. Inveniam is at the intersection of capital markets, blockchain, and Big Data for data-rich, seldom-traded assets.