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| Property Type
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Long-lived Proved Reserves
with a 70% PDP value mix. Low risk, conventional, onshore production
with established histories and low operating costs. Control of
operations rests in a majority of the properties |
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| Structure
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|
Limited Partnership in
which EFS invests from 75% - 95% of equity
capital as a limited partner (up to 99% in select
cases). The customer would retain an interest as
general partner and share in the upside residual
through an increased back-in after limited partner
achieves target rate of return |
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| Operations
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|
Partner operates
properties and handles day-to-day property management;
major decisions are handled at the Partnership level |
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| Amount
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|
$10 million minimum
investment |
|
| Term
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|
Long-term investment
outlook; typical holding period of 3 - 5 years, but would
opportunistically exit |
|
Valuation
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|
Valuation
based on independent engineering and forward price curve |
|
Price Hedge
|
|
Partnership
mitigates commodity price risk through financial
hedges or physicals contracts |
|
| Risking
|
|
Reserves are risked
according to classification |
|
| Preferred Returns
|
|
Approximately 15% target returns (pre-back in) based upon specific transaction details such as asset type, cash flow profile, operating margin, production risks, etc. |
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