Prior Venture Case Study
Rio Bravo Joint Venture
A real example of how ENR structures deals, raises capital, and delivers returns to investors. Use this as proof of concept when speaking with prospects about the Pecos Valley JV.
Why This Matters on Calls
Prospects ask: "Have you done this before?" Rio Bravo is your answer. Same structure, same operator model, same tax advantages, real wells producing real oil. The numbers below are from the actual JV offering. This is not a hypothetical. ENR has completed 28 ventures since 2010 and raised over $55M in total capital.
Deal Structure
Campbell & Converse Counties, Wyoming
7 lateral wells
$100,000 per unit
50 units offered
1/2 unit minimum
1% of targeted capital raise
1.98% per unit
Of total venture
Well Performance Data
Campbell County, WY
6 lateral wells
Projected Annual Return per Unit (at $80 oil)
$50,813 / year
Converse County, WY
1 lateral well
Projected Annual Return per Unit (at $80 oil)
$21,262 / year
Combined Return and Tax Impact
Annual Revenue per Unit
Based on offset well data at $80/bbl oil. Not a guarantee.
Year 1 Tax Impact (6 months)
Revenue stays in the bank. Deductions reduce your taxable income.
How ENR Structures Every Deal
Eagle Natural Resources
Identifies oil/gas assets available in the United States
Verifies the economic profitability of the opportunity
Raises capital from accredited investors as partners in a Joint Venture
Starts every JV with minimum 1% of the targeted capital raise
Completes the purchase of assets on behalf of the Joint Venture
The Investor
Contributes capital to the Joint Venture (minimums set in the CIM)
Votes on the business plan outlined in the CIM
Votes on any deviations from the original plan (e.g., unforeseen rework)
Collects revenue from sale of oil/gas through the Joint Venture
Enjoys tax advantages under IRC Section 263(c)
Rio Bravo vs. Pecos Valley: Side by Side
| Metric | Rio Bravo JV | Pecos Valley JV |
|---|---|---|
| Location | Campbell & Converse Counties, WY | Eddy & Lea Counties, NM (Permian Basin) |
| Wells | 7 lateral wells | 421 wells (333 active, 13 shut-in, 75 injection) |
| Unit Price | $100,000 | $100,000 |
| Units Offered | 50 | 83 |
| Total Raise | $5,000,000 | $8,300,000 |
| ENR Commitment | 1/2 unit (1% of raise) | 1% minimum of raise |
| Well Type | New drill (lateral) | Existing producing + workover program |
| Current Production | Pre-production (offset data) | 154 BOPD + 113 MCFD (current) |
| Tax Structure | IRC Section 263(c) + depletion | IRC Section 263(c) + depletion |
| Accounting | Not specified | Baker Tilly (Top 10 US firm) |
| Operator | Not specified | Phoenix Oilfield Services (ENR subsidiary) |
How to Use This on Calls
When They Ask About Track Record
"ENR has completed 28 ventures since 2010 and raised over $55 million in total capital. The Rio Bravo JV in Wyoming was structured identically to what we're doing now in the Permian Basin. Same process, same tax advantages, same operator model."
When They Want to See Numbers
"In Rio Bravo, a single $100K unit was projected to return over $72,000 per year from 7 wells at $80 oil. Pecos Valley has 421 wells at current production. The scale is significantly larger, and the wells are already producing."
When They Question the Tax Math
"In Rio Bravo, an investor who came in mid-year still reduced their taxable income by over $44,000 in year one, while keeping $36,000 in revenue in the bank. The deduction and the cash flow are separate. You get both."
Required Disclaimers
Offset well data is not a guarantee of the production of any new well. The values used assist in calculations relating to possible production levels. Oil prices fluctuate based on global conditions. Tax benefits vary by individual; consult your tax advisor for effects on your individual situation. See CIM "RISK FACTORS" to consider if this investment is right for you. Eagle Natural Resources does not offer tax advice.