- 3D Seismic / Well Control
- Exploration teams with great track record
- Multiple target formations
- Exploration and Exploitation
- Targeting 2-5X Return Profiles
- High Risk
- Up to 100% deductible (Intangible, Tangible and depletion)
Exploration and exploitation are for experienced investors that understand the risk involved. The Return Profile for the Wildcat Funds very and is represented through forward-looking projections on the project page in four different categories based on the size of the reserves the exploration team believes is there. The categories are Dryhole, Breakeven, Expected Case, and High Case.
* Dryhole means the well was drilled, but once it was logged, the engineering team decided the well would not be economic if completed. The well will be plugged and abandoned and once all costs is paid any leftover money in the account will be reimbursed to investors.
* Breakeven is calculated by the total amount of reserves needed to repay investors back the amount of money invested. This does not include any tax deductions.
* Expected case is calculated by our engineering team as they risk the reserves the exploration team provides and assuming the well is successful, there is an estimated time for full recovery of investment, total rate of return and the Internal Rate of Return.
* High case is provided by the exploration team and typically is the best case scenario if the well pays out and the total amount or reserves estimated are found.
Step 1: Exploration and Exploitation
We invest with the best Exploration and Exploitation teams in the Country. Industry deals that are vetted by oil and gas veterans and experts. Exploration is brownfield, 3D seismic, AVO and amplitudes with a good understanding of well control. Exploitation / Developmental rely on 3D seismic, AVO and amplitudes and looking for multiple pay targets and good well control.
Step 2: Drilling is exciting and can be rewarding.
A tremendous amount of expertise is needed to evaluate and negotiate a drilling prospect. Each Wildcat prospect has a prospect fee, promote, G&G (Geological and Geophysical Cost) paid to the exploration team prior to drilling. The drilling and completion estimated cost are provided on an Authorization for Expenditures (AFE) for review. Once approved and all documents signed, the Partnership sends the Prospect fee and G&G along with the drilling cost to the operator. If the operator exceeds the drilling cost, a cash call will be required, all partners must participate and there are non-consent penalties. Once drilling is commenced, investors in the Partnership receive daily, weekly and monthly updates and access to all of the drilling reports.
Step 3: Wildcatting. the thrill, the love.
When drilling is completed, the well is logged and reviewed prior to the operator determining if the well should be completed. If determined a “Dryhole”, any funds not spent in the Partnership will be reimbursed to all the partners once all bills are paid. If the operator completes the well, he will request the Partnership to release the money allocated for completion. This process can take upwards of 30 days to determine if the well is successful..90 days to see if it will payout.
Always expect 6 to 8 months, before the first revenue check is paid out.
You are investing in a limited partnership that participates in a drilling program with vetted operators in the United States that our team identifies, acquires, and manages on your behalf. However, you should expect it to grow and change over time as we acquire more projects, and others are sold or pay off.
You earn returns once a Wildcat well is online and producing oil and/or gas. Oil sold pays the following month and Natural gas sold pays 60 days from the month sold.
Wildcat projects can take 3 - 8 months before an investor receives a distribution. Once the well is up and operational, distributions are typically distributed in the middle of the month following the end of each production month., e.g. mid-April for distributions earned during March and paid out on a monthly basis from that point on.
Oil and gas is inherently a long-term, illiquid investment. EnergyFunders is intended for investors who have a minimum time horizon of approximately five years. However, many of our Yield Funds can payout the initial investment with returns in under 24 months.
Wildcat Funds have two sets of fees. Fee’s to the Operator and fees to the Managing General Partner (GP) in the Partnership. The fees to the operator are Geological and Geophysical (G&G), prospect fee and Promote (otherwise called a carry). The General Partner earns a 2% Net Profit Interest (NPI) only when the investor receives a distribution. Once the investor receives 100% of their investment back plus a 15% IRR hurdle, the General Partner earns an increase of 15-25% of the Partnership units.
Investors receive a K1 from the Partnership for each Fund invested in or before March of the following year. The K1’s are easily downloaded from the Investors back office.
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