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Alternative to outright sale
Liquidity in the form of cash proceeds
Ability to reallocate capital from lower yielding PDP to higher yielding E&P investments
Continued control of operations (including COPAS overhead charges)
Participation in upside through a back-in
Continued presence in a geographical area
Reliance of Limited Partner on customer for operating management (Limited Partner consent required for major actions - drilling, development, dispositions, etc.)
Infusion of cash
Sale of reserves to newly formed partnership…reserves move from customer balance sheet to partnership balance sheet
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