Seitel, Inc. Secures $100 Million Credit Lines from Banks
Seitel, Inc., a diversified energy company, has received commitments from its banks to provide a total of up to $100 million in credit lines to support its operating growth. The company's wholly-owned subsidiary, DDD Energy, Inc., will be eligible for a revolving line of credit of up to $75 million, secured by proven oil and gas reserves and supported by Seitel's guaranty. In addition, Seitel's revolving credit line for its seismic data operations will be increased from $20 to $25 million and extended to June 1, 1997.
Key Takeaways:
- Seitel, Inc. has secured $100 million in credit lines from its banks, with up to $75 million available to DDD Energy, Inc. for a revolving line of credit secured by proven oil and gas reserves.
- The credit lines will support Seitel's operating growth, with the company's banks recognizing its strong financial condition and growth prospects.
- DDD Energy, Inc. will implement advanced seismic technology in partnering relationships with over 60 oil and gas companies.
- Seitel Gas & Energy Corp., another wholly-owned subsidiary, will market natural gas directly to large-volume consumers at significant utility-rate savings.
- The interest rate on the increased seismic credit facility will be the prevailing prime rate or LIBOR plus 2 percent, at Seitel's discretion.
- Seitel is a leading provider of seismic data and corollary geophysical services to over 300 petroleum companies.
Statistics:
- $100 million: total credit lines provided by Seitel's banks
- $75 million: maximum amount available to DDD Energy, Inc. for a revolving line of credit
- $25 million: increased revolving credit line for Seitel's seismic data operations
- 300: number of petroleum companies that Seitel provides seismic data and corllary geophysical services to
- 60: number of oil and gas companies that DDD Energy, Inc. partners with
- 2 percent: interest rate added to LIBOR for the new bank line for petroleum reserves
Sources:
- PR Newswire
- Seitel, Inc.