We are independent oilmen. Our team is made up of petroleum engineers, operations managers, geologists, land men and finance specialists. We have owned, operated and financed projects like yours.
Today we use this experience as investors. We assess your project on its technical merits, land position and operating capabilities first; deal terms and spreadsheets come second. When we commit, it’s as your partner and you get the benefit of our eyes, ears and years.
We are equity investors, taking equity risk along side you. We are not lenders. We are the decision makers, the investment committee and the management team. We sit together in Dallas, TX. We don’t have to go someone in New York or London. Our capital is already committed; there are no financing contingencies.
You are an independent operator and want to keep it that way. You have a project, or projects, underway and/or you are looking at an acquisition. To reach your goal, you need up to $40 million of outside capital. Your project is in the lower 48, onshore and has some production (<30% PDP) and significant drilling upside (>70% PUD).
As the operator, you may be self-sufficient or you may want to use some of the field and back office capabilities of our team. In addition to engineering and geology, we can provide accounting, invoice/payables management, land records and regulatory.
We invest as your partner, not your boss. Our preferred investment is in the purchase of non-operated working interest governed by a standard JOA. We also offer you additional upside through a back-in to our interest once capital is returned and rates of return are achieved. This is dealt with in a simple side letter. Our documentation is measured in pages, not pounds and nothing is carved in stone; if another structure is required, we are flexible.
You maintain your interest and continue as operator. You have freedom to work on other projects and with other partners. We prefer to have a substantial interest and some rights regarding operations in the event of a sale or non-performance.
We are filling a niche by focusing on smaller transactions and investing as a non-op partner. If you are interested in hearing more, call us.
Click here to learn more about the Falcon E&P Opportunities Fund, L.P.