Some deals are found through personal networks (friends, coworkers, other private operators), while others are available to anyone via promotional companies (similar to realtors but without an MLS).

There are three main parties involved in the deal: Cody Pope, Bob Stitzel, and Travis Kohnke with a combined experience of more than 60 years in oil and gas. Cody manages drilling and completions professionals with a payroll of over $50MM/yr who are responsible for over $1.5BB in capital projects for major global oil companies. He also has a background in finance and corporate leadership training. Bob is a professional engineer and has operated his own oil company for the last nine years. He worked for Conoco Phillips and possesses extensive knowledge of industry regulations and best practices. Travis works for the second largest international oil and gas service company in the world. He is an industry leader who understands both, multimillion-dollar field operations and large corporate entities.

This will be a traditional partnership with two parties, a general partner and limited partner. The general partners will be the investors who own the actual asset(s). The limited partner will be the operating company responsible for daily operations of the asset including field work, additional personnel and services, daily chemical and workover treatments, regulatory compliance, investor relations, and financial reporting. The limited partner will posses an exclusive agreement to operate the asset with the stated goal of maximizing long-term cash flow for the general partner(s). The payouts from the LP to the GP will be in accordance with the % (percentage) of the asset owned.

The answer is not a promise or guarantee but an expectation based on the plan outlined above. No guarantee or promise is being made. That said, our goal is to pay back investors the full amount of their original capital by the end of 5 years. The LP will continue to be paid on a quarterly basis from the net proceeds of the sale of oil and gas according to the accounting stated in the operating agreement.

The GP (operator) will, at its discretion, execute a workover plan that may include re-acidizing, hydraulic fracturing (frac), rod and pump jobs and other field optimization such as chemical and equipment changes, automation, and/or other physical upgrades.

These costs will be paid out of reserves accumulated from the gross sales of oil and gas. This is commonly known as lease operating expenses (LOE).

The GP will have exclusive rights, as the packager of the deal, to operate the asset for a term of 10 (ten) years with first right of refusal thereafter. Additionally, the GP will charge a fee per well that is customary in the industry. Additionally, the GP will have a 20% (twenty percent) back-end override after the LP has been paid the initial investment back. The GP is therefore incentivized to produce the field as optimally as possible so as to get the investors (LP) their money back ASAP so the LP can begin to share in the proceeds. There is also incentive for the GP to continue to operate in good faith as a fellow partaker of the future proceeds.

There are many reasons companies and individuals sell assets including but not limited to lifestyle and investment goals, large cash needs, retirement, personal considerations, and others. Just like every time a stock is bought, it is also sold, so it is with O/G assets. What is desired by one party is liquidated by another for their own subjective reasons.

Additionally, sometimes the investor and operator are the same party. That party may want to exit the business for any number of reasons including simple retirement (which we find to be the case much of the time.) A number of baby boomer generation oil men are exiting the business and that provides an opportunity.

Investors can expect their first checks from the partnership 2 (two) quarters after closing. Payouts will be commensurate with the percentage of the net proceeds of the oil and gas sales. This means that lease operating expenses will be deducted, and the amount paid to the GP will be the amount exceeding this amount.