FAQ

Why is there so much emphasis on whether or not I’m an Accredited Investor?

Energy Partner’s Fund-IX is a private placement offering having filed Form D, Rule 506 with the SEC. Under this rule, EPF-IX may offer and sell securities to an unlimited number of “accredited investors” (generally wealthy or institutional investors, as defined by Rule 501(a) of Regulation D) and to no more than 35 non-accredited investors who meet certain “sophistication” requirements. Therefore, the requirement that EPF-IX must take “reasonable steps” as issuer to verify a purchaser’s status based on the type of Accredited Investor that the purchaser claims to be.

How does one go about making an investment in Energy Partner’s Fund?

Thoroughly familiarize yourself with how our investment program works by reviewing the information provided on this website. Request a copy of the Private Placement Memorandum and Partnership Agreement and review.  Be sure you get answers to any and all questions you have about investing in Energy Partner Fund-IX. Plan on investing discretionary funds only. Provide 3rd party verification that you are an Accredited Investor. Return to CEFM an executed set of subscription documents. Note: Clarke Energy Fund Management as Managing General Partner will adhere to the suitability standards imposed by SEC Rule 506 of Regulation D in evaluating potential investors.  Accordingly, participation as a Partner will be limited to only those persons who represent that they are willing and able to assume the risk of a highly speculative investment of limited liquidity.  The foregoing requirements are only minimum suitability standards, and the satisfaction of those standards by an investor does not necessarily indicate that an investment in the Units is suitable for such person.  The Managing General Partner has complete discretion in determining whether or not to accept any particular subscription.

How long has CEFM been around?

Clarke Energy Fund Management, LLC is a Virginia limited liability company that was organized February 1, 2007 to be the Managing General Partner of energy fund partnerships.

Where are your wells located?

So far, all of our wells have been located domestically within the Continental U.S. with the majority being found in the highly productive Gulf Coast area of Texas and Louisiana.

Won’t you run out of projects?

We can’t imagine this ever happening. Over the years we have joint ventured with nearly 100 different Exploration Partners with in-house teams of landmen, geologists, geophysicists, petroleum engineers, and project managers. Many are Oil and Gas Companies that you likely are familiar with such as Kerr-McGee, Texaco, Exxon, Mobil, and Hunt Petroleum to name just a few. Among our network of prospect generators and operators there are literally hundreds of well opportunities available for us to choose from at any given time. Our limitation on projects is self-imposed. We are extremely discriminating as to who we will partner with and which wells we participate in. Our preference is for conventional drilling projects, so we avoid Wall Street resource plays such as the Bakken shale oil or Marcellus gas shale drilling that you often hear about.

What is the evaluation process behind your well selections, i.e. what makes a well prospect attractive?

Here is a top-10 summary of our well selection guidelines: Through dollar-cost-averaging spread your drilling budget over a diverse spectrum of well projects. DO NOT, UNDER ANY   CIRCUMSTANCE AND NO MATTER HOW PROMISING A PROSPECT APPEARS TO BE, EXCEED YOUR PRESET MAXIMUM PER WELL ALLOCATION. Try to include as many of the safer offset wells and infield drilling prospects in your portfolio as possible. Exploratory wells as a minimum should have multi-pay zone objectives, validated 3-D seismic interpretation and associated well control. Only participate in wells that will “probably” (as opposed to possibly) yield a blended annual tax-weighted return through payback of at least 30% and accumulate a reserves base of 3Xs ROI through the life of the portfolio. Plan on a 50% completion rate – continuously strive for 60% or better. The ideal crude oil to natural gas production ratio for the portfolio should be 1 bbl : 5mcf Anticipate up to 20% in drilling/completion cost overruns. Expect 15-20% annual production depletion on a balanced well portfolio. Understand that each well is a separate business unit subject to operating expenses and taxes and that any unprofitable well(s) must be quickly identified and divested. And last, but certainly not least, know your prospect generators and operators. Deal only with those that have proven track records and reputations for honest representation and efficient management.

Why did you create this energy investment fund?

Nearly two decades ago started out with the intent of providing a means for friends, relatives, and colleagues to enjoy the same great rewards of oil and gas well investing that we had been blessed with. The objective was expanded to include others who likewise desired to invest in the same energy arena, but with greatly diminished risks as opposed to traditional well investing.

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Important Notice:
Information is limited to the capabilities CEFM offers as originator and administrator of Private Placement Offerings and is not a solicitation to buy or an offer to sell any securities. Such solicitation or offer will only be made to qualified Sophisticated or Accredited Investors via confidential Private Placement Memorandum in accordance with SEC Regulation D, Rule 506.

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