Innov8 Resources, Inc. | Bridge Facility

The opportunity in one paragraph

A USD 20 million senior secured bridge funds the work that turns leases into production: recompleting and pressure-testing the first producing wells, completing the first one to two 5-packs, and bringing online the processing that ladders product value from raw gas to separated gas to liquefied product. Revenue begins inside 90 days and recurs monthly, and the facility is repaid at the Program 2 LP first close or the Program 1 senior secured close.

The facility

Structured as a clean, well-covered bridge.

Borrower	Bridge Program LLC, a Delaware LLC in formation, wholly owned by Innov8 Resources, Inc.
Facility	USD 20,000,000 senior secured bridge (PIK)
Components	A: Pre-Drilling, USD 5,025,000 · B: Drilling, USD 14,150,000 (separately drawable)
Rate / tenor	12% PIK, 18 months
Takeout	First of: Program 2 LP first close (Reg D 506(b)) or Program 1 TX senior secured close
Security	First lien on the funded wells and production; equity kicker at Program 2 LLC

Use of funds

Every dollar moves the program toward first revenue.

Component A · Path to first revenue

$5,025,000

Leases and confirmations, recomplete and pressure-test the first wells, seismic, and the costs to reach first sales.

Component B · Drilling

$14,150,000

Complete the Arizona and Texas 5-packs plus the additional Arizona High Creek well.

Transaction & legal

$200,000

Closing costs. The USD 20.0M commitment includes a modest contingency.

Course to revenue

Financed to flowing, on a defined milestone schedule.

Revenue starts early and the collateral builds value as it produces. Each processing step lifts realized price per unit.

Weeks 0 to ~8

Recomplete 2 wells and pressure-test the first producing wells

Validates deliverability; readies first production.

~Day 60

First raw-gas output sold to prospective offtakers

First sales begin. Offtakes execute at first production. Buyers in active discussions include American Gas Properties and Chart Industries.

~Day 90

First invoices paid, then recurring monthly thereafter

Cash flow turns on and repeats every month, well inside the 18-month term.

Month 7

Separators installed

Product upgrades from raw gas to separated gas, lifting realized price.

Month 10

Liquefaction plants online for the first one to two 5-packs

Highest-value liquefied product comes on stream.

~Day 60

Raw gas

Month 7

Separated gas

Month 10

Liquefied product

Why the bridge is well-covered

Four reasons the coverage is real.

Revenue starts early.

First sales at roughly day 60 and paid invoices by day 90 sit far inside the 18-month term; cash flow then recurs monthly.

The collateral builds value as it produces.

The lien is on producing wells whose worth rises across the ramp, not on a static asset.

Value ladders up.

Realized product moves from raw gas to separated gas to liquefied product, each step lifting price per unit.

Drilling and cash flow run in parallel.

Recompleted wells generate revenue while Component B completes the first 5-packs, so the program is producing before it is fully built.

Takeout and lender economics

The bridge is the catalyst that funds its own repayment.

It funds lease, validation, and first production, which de-risks and accelerates the larger raises that then repay it. At the Program 2 LP first close (Reg D 506(b)) or the Program 1 senior secured close, the bridge is repaid in full (principal plus accrued PIK).

Coupon

12% PIK

Accrues over the term; repaid at takeout.

Equity kicker

1.0% warrant

Indicative warrant for 1.0% of Program 2 LLC at takeout (warrant size subject to operator confirmation; no cash success fee).

Security

First lien

First lien on the funded wells and production.

Notes and caveats

What a lender should hold alongside the numbers.

Offtake. No offtake agreement is executed. American Gas Properties, Chart Industries, and any other buyer named are prospective purchasers in active discussions; offtakes execute at first production.

Projections. The milestone schedule and the laddering of product value reflect management's current projections; revenue timing depends on operational execution and is pre-promote. Detailed return scenarios are in the June 15, 2026 financial model.

Title and perfection. Completion of the title chain and lien perfection are conditions precedent in the Loan Agreement and are in progress.

Status. This is an indicative summary, not an offer of securities and not certified legal or financial advice. Definitive terms are set in the Bridge Loan Offer Letter and Loan Agreement.