INVESTOR EDUCATION
The More You Know,
The Better Partner You Become.
We believe understanding builds confidence.
And confident partners build lasting relationships.
Our objective is not simply to present investment opportunities.
It is to help prospective partners understand how private oil and gas partnerships work so they can make informed decisions.
Understanding Direct Participation
Unlike publicly traded energy companies, direct participation partnerships allow investors to own a working interest in a specific oil and gas project.
Rather than purchasing shares of a corporation, partners participate directly in the project and share in revenues generated by production according to their ownership interest.
What Is Working Interest?
A working interest represents direct ownership in an oil and gas project.
Working interest owners participate in the costs associated with drilling and operating a well while also participating in the potential revenues generated by production.
This ownership structure may provide certain tax advantages, along with the potential for monthly production income, depending on the performance of the project.
Why Accredited Investors?
Lonesome Dove Energy sponsors private oil and gas joint venture partnerships and chooses to work with accredited investors who meet established financial qualifications.
We believe this helps ensure our partners understand the unique characteristics and risks associated with direct participation investments while also being financially positioned to make long-term investment decisions.
Our objective is to provide qualified investors with clear information so they can determine whether this type of investment aligns with their financial goals.
Investing Through a Self-Directed IRA
Many investors are surprised to learn that certain retirement accounts may be eligible to participate in private oil and gas partnerships.
Self-directed IRAs, Roth IRAs, SEP IRAs, certain 401(k) rollovers, and other qualifying retirement accounts can often invest in alternative assets that are generally unavailable through traditional brokerage accounts.
For many investors, this provides another avenue to participate in private energy partnerships while continuing to invest through their retirement account.
We have experience working with self-directed IRA custodians and are happy to discuss the process if you’d like to learn more.
Potential Tax Advantages
Oil and gas partnerships may offer unique tax advantages not commonly associated with many traditional investments.
Depending upon an investor’s individual circumstances, these may include intangible drilling cost deductions, depletion allowances, and other tax benefits permitted under current tax law.
Because every investor’s situation is different, we encourage partners to consult their tax professional regarding the application of these potential benefits.
Potential Monthly Income
When a well is successfully completed and placed into production, partners may receive monthly distributions based upon their ownership interest and the well’s production.
Production rates, commodity prices, and operating expenses can all influence monthly revenue.
As with any investment, results are not guaranteed.
Understanding Risk
Every investment carries risk.
Oil and gas partnerships are no exception.
Commodity prices fluctuate.
Mechanical issues can occur.
Geological expectations may not always be realized.
Our responsibility is to carefully evaluate opportunities, communicate openly, and provide our partners with the information they need to make informed decisions.
Our Process
- Initial Conversation
- Executive Summary
- Opportunity Discussion
- Offering Memorandum
- Subscription Documents
- Become a Partner
Common Questions About Private Oil & Gas Investing
One of the advantages of working with prospective partners one-on-one is the opportunity to answer questions and provide education throughout the due diligence process.
Some of the questions we discuss most frequently include:
- If it’s a good prospect, why is it available?
- Why don’t the major oil companies drill every opportunity?
- Why are projects syndicated?
- What does an operator actually do?
- What role does Lonesome Dove Energy play?
- Why do drilling schedules sometimes change?
These topics are discussed throughout our educational articles and during our conversations with prospective partners because we believe informed investors make confident partners.
Closing
Our objective is not simply to present investment opportunities.
It is to help prospective partners understand them.