... of a bank's portfolio, the three basic types of production loans are amortizing term loans, production payment loans, and revolving line of credits followed by term loans. All oil and gas production loans will require an evaluation of the reserves backing the production loans. In general, this appraisal...

... Abstract The independent oil and gas producer frequently finds it advantageous to borrow against the value of his hydrocarbon reserves. This paper considers the requirements for a production based loan and the calculations that a bank would perform to arrive at a revolving credit/term loan...