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It is very difficult to access oil and gas opportunity without large amounts of capital, this is why this investment class is typically utilized by private equity, family offices and pension funds.
However, finding an access point has always been a priority of our management team and by discovering this strategy in 2023, we can now take advantage of this opportunity through the limited partnership model, making it available to individuals inveting $100,000-$5,000,000 or more, basically leveling the playing field for individual investors and allowing them to have the same advantages as large private equity firms.
This investment is reserved for accredited investors only. According to SEC regulations, an accredited investor is someone with a net worth exceeding $1 million (excluding the value of a person’s primary residence) or someone who has earned an income of $200,000 (or $300,000 for a married couple) in each of the prior two years. Certain licensed financial professionals also qualify for this investment, even if they do not meet the income or net worth requirements.
You are investing in a limited partnership, that invests in non-operated working interests in oil and gas.
Our strategy provides for investment directly “along side” leading oil and gas operators in the Permian Basin, at the well head. We pay our part of the costs of the drilling program and in return we receive our percentage of the production and investores recieve distributions based on its sale.
Each unit requires an investment of $100,000, but we allow fractional units with a minimum investment of $100,000.
Under certain circumstances fractional investments above the minimum will be allowed by the General Partner.
You can expect to recieve a tax offset in the first year and a 15% depletion allowance going forward.
We are targeting an annual preferred distribution of 15% plus.
Quarterly
Compliance and fund transparency are our highest priority. We have hired Formidium, a leading global fund administrator. Currently, Formidium has 800 employees, 1000+ clients, $20 Billion in assets under administration, and four offices globally.
The target for most of the wells is the Permian Basin, which located in West Texas and part of New Mexico and covers an area approximately 250 miles wide and 300 miles long and is composed of more than 7,000 fields.
The Permian Basin is the country’s most important oil region and now accounts for more than half of the total daily oil production in the U.S. and has seen increased M&A activity in the area recently.
The Permian basin straddles West Texas and southeastern New Mexico and covers an area approximately 250 miles wide and 300 miles long and is composed of more than 7,000 fields.
As you would expect, capex is heavily weighted to the Permian Basin by the world's largest oil and gas companies.
We do not to participate in wildcat wells. We invest along side the largest operators in the world in the Permian Basin, we believe this provides a level of predictability and we believe it provides reduced risk for our investors.
Our exit will be market driven, with potential hold times on individual assets of 18-36 months.
However, it is important to remember that we acquire these assets making sure the economics work if we hold them for life, being 20-30 years.
In a word, yes. What makes the fund unique is the number of assets owned. We target multiple projects a year with industry-leading operators. This provides diversity of location, provides geologic diversity and diversity among the operators.
Each year, the fund will be audited by an industry-leading third-party auditor.
There are no annual management fees associated with the investment.
Investors will be provided with a Schedule K-1 tax document.
A Schedule K-1 shows your allocated portion of income, gains/losses, and associated deductions.
