What is the structure of the deal?
An EnergyFunders venture capital fund and the operator sign a leasehold purchase and sale agreement contingent on raising funds in the specified time frame (30, 60, 90 or 120 days). If the funds are raised, the well is drilled. If not, no further obligations are owed. The fund’s assignment for working interest is due after payment and after the well is completed as a producer. No assignment is due if the well is P&A as a non-producer.