Indigo-Energy has signed a letter of intent with International Financial to form Rivers West Energy.
Under the terms of the letter of intent (LOI), International Financial Corporation (IFC) has agreed to provide the newly formed company, upon the execution of a definitive agreement, with funds in the total amount of $624 million. Upon the execution of the agreement, Indigo Energy will retain 60% ownership of Rivers West Energy, with IFC owning the remainder.
Rivers West Energy plans to use the funds to purchase oil and gas leases comprising of approximately 106,000 acres located in southern Illinois, southwestern Indiana and western and west central Kentucky, and to build the infrastructure needed to properly develop the natural resources located within the region where the company currently holds leases and options.
Steve Durdin, CEO and president of Indigo-Energy, said: Today’s announcement is a monumental step in the right direction for the company – from both a strategic and financial perspective. Securing this capital would not only allow us to fully execute on our current growth initiatives, but would also provide us with a foundation for long-term success.
We believe the future for Indigo is bright – as we envision an organization that is at the forefront of innovation and one that is a leading developer of domestic energy resources. This investment will allow us to fully develop our vision of an all-encompassing business model – one that includes drilling, production and infrastructure development all under one roof.