ISSUER: Larimer County Energy Fund LP
ASSET TYPE: Oil and Gas Development
INVESTMENT TYPE: Private Placement Memorandum Regulation D – Rule 506 (c)
Limited Partnership Interests
Investments also available for Qualified Funds (IRA’s, SEP’s, 401K’s, etc.) and 1031 Exchange
*For Accredited Investors Only
OFFERING SIZE: $50,000,000
UNIT SIZE: $50,000 Per Unit (fractional interests available upon request)
LOCATION: Denver-Julesburg (“DJ”) Basin – Larimer County, Colorado
LEASE ACREAGE: Up to 40,000 adjacent acres, or 62.5 square miles/sections
PAY ZONES: Possible pay zones include the Codell Sandstone, Niobrara Chalk, Muddy J Sandstone,
Project Summary: Larimer County Energy Fund LP is acquiring up to 40,000 oil and gas mineral acres
with the potential to drill up to 200 wells. Phase I Development will use the initial funds to
develop the oil and gas mineral leases by drilling eight horizontal wells. Sale of monthly
production will yield potential cash flow and amass value of the mineral acreage for favorable exit
Partnership Distributions: Partners will receive 80% of distributable cash flow until payout.
Payout means 100% of original investment, plus an internal rate of return of 12%. After payout,
partners receive distributions in accordance to their subscribed funds applicable percentages.
Our Process: We begin by creating one “drilling unit.” A drilling unit is comprised
of three wells – one “PDP” and two “PUDs.” Initially a single producing well (PDP) is
drilled, which represents roughly one-third of our drilling unit’s total value. The remaining
two-thirds are based on two proven, undeveloped wells (PUDs), located on each side of the
PDP. The value of the PUDs correlates to their strong potential to match the
production of the PDP. After this first drilling unit is created, we repeat the process. This
process can raise our proven reserves, leading to a greater market value for our field. We aim to
repeat this process until the field reaches a peak value for ultimate divestiture of our assets.
Divestiture is forecasted to occur within a two to five year time frame. -As proposed in the
initial plan described above, eight “drilling units” are scheduled for implementation.
Potential Tax Benefits: Intangible Drilling Costs, Bonus Depreciation and Depletion Allowance
Suitability: For Accredited Investors only (see PPM for definition)
Listen to Jay Young, Founder & CEO of King Operating Corporation talk about our Larimer County Energy Project!