Due diligence of any oil and gas program requires industry knowledge and experience. We have reviewed all types of oil and gas programs including:

• All types of drilling programs, from exploratory to developmental, shallow to deep, and onshore and offshore programs;
• Acquisition and redevelopment of existing, income-producing wells;
• Royalty programs; and
• Tax advantaged programs.

We have reviewed programs with capital raises ranging in size from $10 million or less for a limited number of wells, up to several hundred million dollars encompassing hundreds of wells. In connection with our review of oil and gas programs, we typically:

• Visit the offices of the Sponsor of the program to meet with key executives as well as engineers and other experts to review relevant program data;
• Review reserve reports, historical well data, performance of comparable wells in the area;
• Analyze underwriting to assess reasonableness of assumptions driving any financial model;
• Review all transactional documents, including title to land or mineral rights;
• Research novel drilling or redevelopment techniques anticipated to be used, as well as local geography and drilling activity; and
• Analyze conditions in the oil and gas market.

Using the data gathered in the review process, we are able to provide detailed analysis of the program, including:

• Our evaluation of offering document disclosure based on our review of the items listed above;
• Identification of program strengths and weaknesses as compared to other similar programs; and
• Highlight of any unusual or particularly favorable or unfavorable terms of the program.

In addition, we have a relationship with an independent engineering firm that assists us in our review of most oil and gas programs. This firm’s technical experience complements our thorough due diligence process, and gives our clients an additional perspective on the program under review. We often engage this firm to provide enhanced technical and market analysis.