We only charge one fee to invest in the partnerships, which is our management fee. What we do as a company is we turnkey the pricing to the investors, which means we sell the interest at a guaranteed cost. What that means for our investors is that if the operators spend more money or they blow the budget on the well, we don't go back and ask our investors to come out of pocket and put any more money into the investment. A portion of our management fee will go to pay for any cost overruns or any additional expenses acquired throughout the drilling process and completion when they go to frac. The one-time management fee also pays for other things such as office materials, bookmaking, and everyday expense overhead, etc. Comments are closed.
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