CEFM develops, delivers, and administers limited partnerships that purchase fractional working interests across a broad spectrum of oil and natural gas well properties and oil field re-development projects. All expenses associated with the attainment of production and the subsequent revenues produced from these numerous acquired properties are proportionately appropriated among many partners in accordance to their relative investment levels. This greatly minimizes individual risk generally associated with traditional oil and natural gas exploration while concurrently maximizing return potentials.
The first stage of product development begins in the exploration and verification arena where considerable effort is expended from a geological perspective in finding and reviewing potential oil and natural gas resource projects that are about ready to be financed. After identifying the best of these prospects, the next step is to evaluate their generation source and/or Sponsor. This is accomplished by performing a thorough background and historical review of the proposed project and of the Operator by utilizing CEFM’s database and whatever third party consultants are deemed necessary to execute a due diligence review.
After collecting and verifying all of the due diligence work; CEFM conducts a third and final cut, which is an economic evaluation that defines the expected expenses, as well as the anticipated returns. Only those prospects and/or projects that will most probably meet or exceed partnership ROI goals are ultimately chosen. The prospect identification and final selection process will take anywhere from six to eighteen months depending on the availability of suitable prospects that satisfy the stringent appraisal criterion.
CEFM manages the working interests that have been secured by the partnership all the way through drilling, testing, completion, production, and final plug and abandonment. CEFM collects and maintains all customer contracts, and updates operational and financial details of each well prospect or development project that it oversees. In addition, partnership capital statements are generated and regular in-house audits are performed. Revenue earned by the partnership is dispersed through the most efficient manner of distribution available.
By pooling capital through a large fund the Partnership has a much greater ability to obtain better cost arrangements on well purchases and opportunities to participate in the best of the available prospects. Operators generally want to deal with just a few individual Oil & Gas Companies or Partnerships and the best prospects are exclusive. Furthermore, many of the better well prospects have minimum participation limits that are beyond the scope of individuals or smaller partnerships.