Are there enough quality oil & gas companies willing to issue GORRs?
Yes! Many oil & gas companies are willing to issue GORR’s because they are a friendly source of capital which helps finance the development of their proven reserves. This increased production from proven reserves can significantly help oil & gas companies by providing cash flow to the companies without the companies having to finance the development through dilutive equity issues or through debt which can impair their balance sheets. This option further protects oil & gas companies from exposing themselves to unfriendly competition through working interest joint venture partners. Further, the oil & gas companies are entitled to book any new reserves developed which can enhance their companies’ share value.
