For Qualified Funds
Monthly Preferred Stock Cash Dividend Distributions
Upon Divestiture, Targeted 3:1 Returns
Does not generate Unrelated Business Taxable Income (UBTI)
ISSUER: Larimer County Energy Fund QF Inc.
ASSET TYPE: Oil and Gas Development
INVESTMENT TYPE: Private Placement Memorandum, Regulation D – Rule 506 (c)
Investments Available: Qualified Funds (IRA’s, SEP’s, 401K’s, etc.) Preferred Stock
OFFERING SIZE: $100,000,000
UNIT SIZE: $500,000 Per Preferred Share of Stock
(Partial Share of Preferred Stock 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 QF Inc. 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
Distributions: Preferred Stock Shareholders 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, Preferred Stock Shareholders 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.
Suitability: For Accredited Investors only (see PPM for definition)
Join our Webinar on Wednesday, May 20th at 3:15 PM CST to Learn How You Can Earn Projected Double Digit Returns with Lower Oil Prices More!
Listen to Jay Young, Founder & CEO of King Operating Corporation talk about our Larimer County Energy Project!