
Where does the General Partner find deals?
Some deals are found through personal networks (friends, coworkers, other private operators), while others are available to anyone via promotional companies (similar to realtors but without an MLS).
What is the structure of the deal?
Deals can be structured as traditional Limited/General Partnerships with divided working interest or as a contract interest deal or a combination.
What is the expected return on investment (ROI)?
The answer is not a promise or guarantee but an expectation based on the plan outlined above. No guarantee or promise is being made. That said, our goal is to pay back investors the full amount of their original capital by the end of 5 years. The LP will continue to be paid on a quarterly basis from the net proceeds of the sale of oil and gas according to the accounting stated in the operating agreement.
What is the plan to maintain or boost production?
The GP (operator) will, at its discretion, execute a workover plan that may include re-acidizing, hydraulic fracturing (frac), rod and pump jobs and other field optimization such as chemical and equipment changes, automation, and/or other physical upgrades.
Where will the cost of the taxes, workovers, maintenance, and other costs come from?
These costs will be paid out of reserves accumulated from the gross sales of oil and gas. This is commonly known as lease operating expenses (LOE).
Where is RR located?
We are headquartered in Midland, TX, the heart of the Permian Basin.
When will investors get their first payouts? How much will it be?
Each deal is different and payout terms are nensurate with the percentage of the net proceeds of the oil and gas sales. This means that lease operating expenses will be deducted, and the amount paid to the GP will be the amount exceeding this amount.
We are headquartered in Midland, TX, the heart of the Permian Basin.
