EnergyFunders Inaugural Yield Fund of 2020 – the Titan Chalk, owned by VC36, has paid out $273,000 to date . $753,000 was invested in this project by March 2020. However, as you know, that was just days before the world started shutting down due to the pandemic, followed by an oil price crash to an unprecedented -$37 futures price per barrel.
The operator responded swiftly to the price crash by shutting-in the well in order to wait for a recovery. Meanwhile, Paleo Oil Co. worked with the operator to work out the final closing terms as part of the informal agreement accounting audit of the drilling and completion expenses. As a result of their closing, EnergyFunders received an additional 2.5% working interest beyond the expectations in the original deal terms.
The fund closed in May, and within a few weeks, prices had rebounded to around $40 per barrel. The operator brought the well back online on July 21st, and today the well is producing as expected and our projected returns are on target.
36.3% Returned to Investors
After the first month of production, we returned 8.89% of VC36, LP’s total investment. This $67,000 distribution was the single largest disbursement made to date on the EnergyFunders platform. The results of our first yield product evidence the low risk and speedy principal payback features associated with the Yield Fund product and its structure.
As the energy industry and the broader economy continue recovering, I’ll leave you with these three key thoughts:
- Paleo’s industry veterans now joined with the EnergyFunders team provides a considerable advantage for creating value for our investors in the complex world of oil and gas investing.
- Our Yield Fund structure is delivering on its promise of generating above-market risk-adjusted returns.
- If you missed out on the Titan Chalk Yield Fund or you want to allocate more capital to our yield product, we are currently offering our second yield fund in the Thunderstruck project, which remains open for investment.
We remain grateful for all of our customers/investors who have continued to believe in our products and services and who have continued to sponsor us during these past few months of turbulent and uncertain times in the world. I am very proud to have been able to meet our return objectivesduring these times and look forward to continued prosperity for the remainder of the year.