The risk associated with borrowing money secured by oil and gas properties in an environment of rapidly fluctuating oil prices can be reduced by understanding the energy lending process and systematically comparing the loans offered by various banks. Furthermore, by viewing an existing loan which is in default from the bank's viewpoint, the borrower may be able to be more successful in avoiding foreclosure.

Keywords:
assumption, collateral, capital, interest rate, default, asset and portfolio management, spe 16303, loan value, payment, effective evaluation
Subjects:
Reserves Evaluation, Asset and Portfolio Management, Reserves classification
Copyright 1987, Society of Petroleum Engineers
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