FAQ's
1. Why is Jay selling his production?
These properties have many PUDs and Behind-Pipe Pays, but Jay is not interested in accelerating production at this time. He is looking for a buyer who will continue to develop these properties, so he can start with a clean slate. Jay will continue his work as a Geologist and will continue prospecting and negotiating new wells for future investors.
2. Will Jay consider a partial sale of the package?
Not at this time. He's selling "all or nothing."
3. Does the package include both Royalties and Working Interest?
Yes, this buyer will take ownership of everything in his portfolio. Additionally, the properties will come with the infrastructure in place for new developments and the opportunity to tap into Jay's wealth of knowledge, should the buyer be interested.
4. Where are the producing wells located?
They are all in south Texas. Click here for map!
5. Where can I see a Production Summary of his complete portfolio?
Click here for the latest file.
6. I'm not interested in production, but I'd love to invest in future wells. Does he have anything I can invest in?
Yes, Jay has various exciting prospects right now. Click here!
7. What's your promote on your prospects?
It varies by prospect, but it's usually 75% NRI, with McGovco taking on 25% carried-to-casing-point Working Interest. Jay often will take some regular WI, as well.
8. I'm not familiar with those terms. What does that mean for me as a partner?
After we drill a well and our partners elect to set casing with our geological analysis and recommendations, McGovco will take 25% or more of the entire cost to set casing on the first well. If we drill any subsequent wells or take any other action, McGovco is on the hook for 25% or more of the expenses. In other words, carried interest comes into play at casing point as opposed to initial drilling costs, etc., of the first well. Any outright WI Jay or McGovco has, we are responsible for that portion of the bill from the first cash call.
9. Give me a reason to feel comfortable investing with you.
Jay and McGovco do not take part in any prospects that we would not fund with our own money. That way, costs of the well are on our shoulders, too, and not just our WI partners.