OG lease assets are acquired in proven fields across multiple basins located in the central region of the U.S. Assets are under-developed and often in a distressed leaseholder position. This acquisition strategy is critical in mitigating risk historically associated to OG investing.
Development is all about creating scalable value in 2 ways: optimization and workovers on existing, producing wells, and drilling new horizontal wells. This approach is designed to make valuable returns scalable, more quickly for investors.
After value is created, often in stages, assets become attractive for larger OG producers to acquire. The assets are positioned for sale as quickly as it makes sense for maximum economic return to investors within context of matching the right buyers. This is how a multiple on exit is designed to be achieved.
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