Frequently Asked Questions and Answers
New investments begin earning income the very first day after funds are cleared. This is in the form of a fixed interest rate, currently 5%* APR. After a minimum time span, or vesting period, your account will begin receiving its proportionate share of income from all the wells in the partnership portfolio.
* As of year 2017
- Thoroughly familiarize yourself with how our investment program works by reviewing the information provided on this website.
- Request a copy of the Private Placement Memorandum and Partnership Agreement and review.
- Be sure you get answers to any and all questions you have about investing in Energy Partner Fund-IX.
- Plan on investing discretionary funds only.
- Provide 3rd party verification that you are an Accredited Investor.
- Return to CEFM an executed set of subscription documents.
Note: Clarke Energy Fund Management as Managing General Partner will adhere to the suitability standards imposed by SEC Rule 506 of Regulation D in evaluating potential investors. Accordingly, participation as a Partner will be limited to only those persons who represent that they are willing and able to assume the risk of a highly speculative investment of limited liquidity. The foregoing requirements are only minimum suitability standards, and the satisfaction of those standards by an investor does not necessarily indicate that an investment in the Units is suitable for such person. The Managing General Partner has complete discretion in determining whether or not to accept any particular subscription.
Energy Partner’s Fund-IX is a private placement offering having filed Form D, Rule 506 with the SEC. Under this rule, EPF-IX may offer and sell securities to an unlimited number of “accredited investors” (generally wealthy or institutional investors, as defined by Rule 501(a) of Regulation D) and to no more than 35 non-accredited investors who meet certain “sophistication” requirements.
Therefore, the requirement that EPF-IX must take “reasonable steps” as issuer to verify a purchaser’s status based on the type of Accredited Investor that the purchaser claims to be.
It takes an incredibly long time to develop multiple oil and gas well projects staggered throughout the year. Paying interest like this takes some of the sting out of the wait while we fully employ your capital. This practice is unique to the industry.
Typically, well-generated income begins during the 5th quarter after making your investment. Even after well income starts we are committed to providing a minimum APR for up to 24 months after the date of your subscription.
The vesting period is designed to give us time to judiciously apply new capital into forthcoming projects. It takes a long time to prepare a site, drill, test, complete and, if it’s successful, finally bring a new well into production. [See Revenue Path.] Since funds are spread over multiple projects, it could take several years to fully expense the new capital infusion.
This vesting period also protects partners that are already receiving well income by not diluting their current income stream from additional partners before new well revenue is added to the overall cash flow.
Interest payments initially come out of our Contingency Fund, which is set aside to cover cash calls for cost overruns, recompletions, and major well reworks. ‘First fruits’ from new wells are used to reimburse the Contingency Fund for the interest that was paid out before any of that income gets distributed to vested partners.
We specialize in securing what is called a “partial working interests” in wells. This is a shared ownership of a Well and it’s returns. that are developed and operated by other oil and gas exploration companies. We search for only the absolute best of the best of prospects.
Clarke Energy Fund Management, LLC is a Virginia limited liability company that was organized February 1, 2007 to be the Managing General Partner of energy fund partnerships.
So far, all of our wells have been located domestically within the Continental U.S. with the majority being found in the highly productive Gulf Coast area of Texas and Louisiana.
Here is a top-11 summary of our well selection guidelines:
- Through dollar-cost-averaging spread your drilling budget over a diverse spectrum of well projects.
- Never exceed a preset maximum per well allocation – no matter how promising a prospect appears to be.
- Try to include as many of the safer offset wells and infield drilling prospects in your portfolio as possible.
- Exploratory wells as a minimum should have multi-pay zone objectives, validated 3-D seismic interpretation and associated well control.
- Only participate in wells that will “probably” (as opposed to possibly) yield a blended annual tax-weighted return through payback of at least 30% and accumulate a reserves base of 3Xs ROI through the life of the portfolio.
- Plan on a 50% completion rate – continuously strive for 60% or better.
- The ideal crude oil to natural gas production ratio for the portfolio should be 1 bbl : 5mcf
- Anticipate up to 20% in drilling/completion cost overruns.
- Expect 15-20% annual production depletion on a balanced well portfolio.
- Understand that each well is a separate business unit subject to operating expenses and taxes and that any unprofitable well(s) must be quickly identified and divested.
- And last, but certainly not least, know your prospect generators and operators. Deal only with those that have proven track records and reputations for honest representation and efficient management.