What will be requested in the due diligence package, and what is the form of the purchase and sale agreement?
Our agreement with an operator is typically in the following format: Simply register as an operator and when you are approved, you will be able to upload your project on EnergyFunders’ proprietary project upload platform. Generally, the due diligence packet requires a proposal similar to what you would submit to any potential non-operating working interest partner. It will also require land documents such as title opinions, leases and permits. You will need a qualified petroleum landman or oil and gas attorney to prepare the land due diligence materials and complete the due diligence checklist.
- A clear drilling or reworking plan and an honest assessment of risk
- Drilling locations including standard legal descriptions
- Revenue projections in a easy-to-read format, accounting for different production scenarios and taxes. Remember, the plan has to be profitable in a low-price
- How much you are trying to raise and what working interest and net revenue interest EnergyFunders will get in return
- AFE (drilling budget)
- Title work/title opinion(s). (Preference goes to title opinions, which are typically required.)
- Drilling units, if applicable
- Permits (We understand if you don’t have them prior to proposing the project.)