The following blog post, by Anya Litvak with the Pittsburgh Business Times, highlights the success of ECA’s bi-fuel rig in Greene County, Pa.
Energy Corporation of America (ECA), a leading exploration and production company and Marcellus Developer, announced today that its wholly owned subsidiary entered into a financing agreement with CPPIB Credit Investments Inc. (“CII”), a wholly-owned subsidiary of CPP Investment Board, pursuant to which ECA and CII closed the first tranche of a $150 million private placement of senior secured notes with an overriding royalty. Through the SPV, ECA Marcellus Production LLC, ECA will continue development of its expansive Marcellus acreage position.
Oil & Gas Investor, By Bertie Taylor
A publicly traded royalty trust will help privately held Energy Corporation of America develop its Marcellus assets without giving up operational control.
When the management of Energy Corporation of America (ECA) needed a capital source to accelerate development of its large resource base in Appalachia, the team knew it wanted to hang on to opportunities to participate in the upside. After reviewing several financing options, including debt, equity, royalty-trust equity and mezzanine, royalty- trust equity quickly stood out as a win-win for the company and its unitholders.