| Reserve Quality |
 |
Long-lived oil or gas properties with
R/P ratio greater
than 3 |
|
Low risk, primary/secondary production -
No enhanced recovery |
|
Onshore preferred |
|
Established production histories
(minimum 12 months on PDP) |
|
Positive cash flow (including capital
expenditures) |
|
Non-concentrated property value - no
more than $5MM or 15% of aggregate transaction value concentrated in
any one well |
|
Operating margin resiliency |
|
Ability to hedge commodity price risk,
including basis differential, to a major index |
|
|
| Operations |
|
Partner with high quality established
operator |
|
Acquire properties with
well-established operating histories |
|
Ensure that majority of the asset value carries operational control |
|
Have Partnership step into control of
operations upon acquisition |
|
Contract with general partner to
perform operations on behalf of the Partnership |
|
