Larimer County Energy Fund LP
For Qualified Funds
Monthly Preferred Stock Cash Dividend Distributions
Upon Divestiture, Targeted 3:1 Returns
Does not generate Unrelated Business Taxable Income (UBTI)
Larimer County Energy Fund QF Inc
Larimer County Energy Fund LP (“LCEF”) plans to acquire up to 40,000 acres which has produced over 8 million BOE. Our first phase is to deep eleven existing wells and drill four new wells within the Denver-Julesburg Basin situated in Larimer County, Colorado.
LISTEN TO JAY YOUNG, FOUNDER & CEO OF KING OPERATING CORPORATION
TALK ABOUT OUR LARIMER COUNTY ENERGY PROJECT!
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: $50,000,000
UNIT SIZE: $50,000 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, Greenhorn Shale
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 strategies.
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)
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ABOUT KING OPERATING CORPORATION
King Operating Corporation is a full service independent oil and gas operator with over twenty-three years experience developing and producing oil fields in Texas. With over 100 years of combined oil and gas exploration development experience, King employs a staff of industry professionals which include: geologists, petroleum engineers, field operations, land professionals, finance and accounting.
King Operating prides itself on prudent operations, capital efficiencies in field and well development, and the ability to fully execute on any selected project. Using state-of-the-art drilling and fracturing technologies, King identifies specific rock formations that ideally have multiple target zones, favorable analogous production histories, and ample running room to grow.