FlowStream seeks to position the cost of streaming capital as being between the cost of debt and the cost of equity.
A stream is not necessarily a replacement for debt.
Structured such that it can co-exist with existing and future debt.
Yes, you don’t need to use the stream capital on the same license as the stream is struck on.
Change of control provisions are common to most streaming contracts. Usually the provision allows for either a buy out of the stream based on a pre-agreed formula or for FlowStream to continue to partner with the new owner of the asset.
The attraction of a streaming contract is that the contract is highly customisable. We want to work with our partners to structure the stream in a way that helps them achieve their objectives but at the same time ensures there is alignment of interest between the oil & gas company and FlowStream.
The key inputs in setting stream terms are forecast production volumes and commodity price. If you share a production profile for the asset (and ideally the economic terms of the licence) we can quickly provide an indicative view of how big a stream could be provided.
We have far more flexibility than many other capital sources to tailor our stream to your operating realities. Irregular lifting/payment timings and/or scheduled, major maintenance down time can be accommodated within our stream structure.
No. A VPP is debt, typically sized off 1P reserves; leaves operating risk with the oil & gas company; typically is for a max of 5-year duration; comes with onerous constraints on the oil & gas company; needs a hedge; and only works in jurisdictions where the lender takes title to sub-soil hydrocarbons, not just produced hydrocarbons.
None of the above apply to a stream.
Nothing–this is not debt–we share the production risk with you.