Typically the best place to find oil is in areas where previous drilling operations were already successful, but the extraction efficiency was low. The wells that were drilled in the 1970s, 1980s, and 1990s used techniques that were only able to extract a small percentage of the total reserves, around 3% to 5%. But with new horizontal drilling and fracking technologies, we can extract 15%-30%.

‘Proven oil reserves’ are quantities of oil that have been discovered and are estimated to be recoverable with a high degree of certainty, typically at least a 90% chance of being extracted under existing economic and technological conditions.

‘Proven’ reserves have already been discovered and quantified and are a subset of total reserves, which include ‘probable’ and ‘possible’ reserves that are less certain and have lower probabilities of being extracted.

Our cost to produce oil in this project encompasses drilling costs and operating costs. The estimated drilling costs amount to $10.04 per barrel or its equivalent in natural gas. Over the project's lifespan, operating costs are expected to range from $12.59 to $19.36, with an average of $14.07. As a result, our projected cost per barrel of oil or its equivalent in natural gas stands at $24.11, which is significantly below the industry average cost of $35 per barrel when drilling a new well.

With geological data gathered from other operations in the area, we’re able to target the right rock formations, and by utilizing horizontal drilling techniques and fracturing the rock, we’re able to capture a much greater share of the oil and gas reservoir.

With the short completion timeline of 6-8 weeks per well, our projections indicate that we can initiate the repayment of EB-5 investors' initial investment after 2 1/2 years of investment. This projection is based on 65 operating wells and an average oil price of $72 per barrel.

Once the initial investment is repaid, EB-5 investors will continue to be involved as limited partners and participate in all future profits. Our plan entails selling the oil and gas assets in year 6, with a projected profit potential for EB-5 investors of $400,000.

As all EB-5 investments are structured as equity investments without a specific repayment timeline guarantee, we advise investors to thoroughly examine the incentives outlined in the offerings they are considering. These incentives should encourage management to prioritize the repayment of investors.

In the case of this specific offering, the NCE management and JCE principals are not eligible to receive any profit distributions until all EB-5 investors have received the repayment of their original investment amount. This structure serves as a strong incentive for management to expedite the repayment process for EB-5 investors.

Investing in this EB-5 project comes with risks such as price fluctuations in the oil and gas industry and the geology risk of finding oil and gas.

However, the project's cost of production and operations is low estimated at $24 per barrel, making it less susceptible to unprofitability in the event of a significant drop in oil prices.Even with an average oil price of $55, EB-5 investors are expected to have all necessary jobs created to satisfy their EB-5 petitions, and to receive their invested capital back by no later than year 6, which is a common timeframe for commercial real estate EB-5 investments.

Our production risk is mitigated by working in areas with ‘Proven Reserves’ and by employing an experienced oil and gas team. Advanced geologic mapping, seismic technology, and extensive experience in this region further minimize the geology risk associated with finding oil and gas. We have thoroughly analyzed the geological data and our production levels are based on the results of numerous wells that have been recompleted in this area.

Traditional EB-5 real estate loans come with inherent risks, such as lack of diversification, long development timelines, subordinated loan positions, inadequate interest rates, challenges in enforcing rights, and potential conflicts of interest. Furthermore, high debt levels can significantly impact developer control and project stability.

Exploring alternative investment options, such as the EB-5 Energy Fund, can provide investors with greater protection and profit potential. The EB-5 Energy Fund offers risk diversification through a portfolio of oil and gas wells, an accelerated timeline for revenue generation, and a structured private equity-like model prioritizing investor repayment and shared profits. With the absence of senior debt and the potential for faster returns on investment, EB-5 Energy Fund presents a compelling opportunity for EB-5 investors to optimize their investment experience.

For a comprehensive article on this subject, please visit the following link

EB-5 investors are making an equity investment into EB5 Energy Fund I LP, which is the new commercial enterprise (NCE). The NCE will then make an equity investment in EB5 Energy Holdings LLC (the JCE), which is the development company recompleting 72 existing oil and gas wells.

The JCE will use up to $120 million of EB-5 capital to finance the oil and gas development in northwestern Oklahoma, and selling the production at market rates.

The project will focus exclusively on drilling in rural areas with ‘Proven Reserves’.

As soon as we secure commitments from 10 investors, we will proceed with re-completing the first two wells. The completion process for each well typically takes approximately 6-8 weeks. Subsequently, once an additional 10 investors have invested, our crews will initiate the drilling of two new wells.

Yes, EB5 Energy operates in qualifying rural counties in Oklahoma that are extensively documented in the Business Plan. Here’s a mapping tool that can be used to confirm whether an area is rural or not. EB5 Energy will only commit EB-5 capital to drill wells that are in confirmed rural areas.

Investing in a rural project has several advantages. Firstly, the minimum investment threshold for rural projects is lower, requiring only $800,000, compared to the $1.05 million required for urban projects.

Moreover, USCIS prioritizes the processing of EB-5 applications for rural investments, so processing is likely to take less than one year, unlike the standard processing time of 3-4 years.

Additionally, visa set-asides are available, which reserve 20% of EB-5 visas each year for investors in rural projects. This provision is particularly beneficial for investors from countries such as China, Vietnam, and India, who face lengthy wait times (7 or more years) due to country-specific limits on EB-5 visas.

A dry well is a well that is drilled for oil or gas but does not produce any commercial quantities of oil or gas. While EB5 Energy will only drill wells where there are known proven reserves of oil, our projections do include a 10% 'dry well' rate. Therefore, our projections are based on 65 producing wells out of the 72 we will recomplete. We believe this to be a conservative estimate.

Our economist has determined that the total of indirect, direct, and induced jobs to be created in this project will be 2,232 jobs.

To satisfy all 150 EB-5 investors we need to create 1,500 jobs. This provides our project a 49% job cushion.

The jobs will be allocated based on the order of each investor's I-829 filing. This allows the earliest filers to take credit for the jobs already created, and gives more time for jobs to be created to cover later filers.

If an Investor’s I-526E Petition is denied, for any reason, and upon written request to withdraw, the company will prioritize repayment to the denied investor before repaying any other EB-5 investor.

US consumers currently obtain 70% of their energy from petroleum. Even a significant portion (62%) of the energy delivered as electricity is generated by fossil fuels.

Switching from a petroleum-based economy to an electrical grid based on renewable energy sources poses several challenges. These include:

1. Infrastructure challenges: The electrical grid will require a significant amount of infrastructure development, including new power plants, transmission lines, and storage facilities.

2. Cost challenges: Developing renewable energy infrastructure is costly and will require a significant amount of investment to transition away from petroleum-based energy sources.

3. Technical challenges: The electrical grid will need to be updated to accommodate the intermittent nature of renewable energy sources such as wind and solar, which can create technical challenges in managing the grid's stability and reliability.

4. Social challenges: The shift towards renewable energy sources could impact the job market and local economies, particularly in regions that are heavily reliant on the petroleum industry. It is important to develop strategies to support these communities during the transition to a new energy economy.

Oklahoma has consistently ranked among the [best places globally](https://www.thecentersquare.com/oklahoma/oklahoma-oil-and-gas-industry-ranked-2nd-in-most-desirable-places-to-invest/article_d175c422-62ae-11ec-9956-df2ce209889e.html) for oil and gas development. Our production cost to recomplete previously drilled wells within the proven reserves of the Anadarko Super Basin located in Oklahoma are expected to cost us around $24 per barrel.

Oklahoma is a prime location for oil and gas development due to its rich history of oil production, geology, and favorable business environment. The state has proven reserves of oil and gas, making it an attractive investment opportunity for companies looking to tap into these resources. Additionally, Oklahoma has established regulatory frameworks and policies that support the oil and gas industry, making it easier and more efficient for companies to operate within the state. The state's pro-business attitude and favorable tax environment also make it an attractive location for oil and gas companies. Overall, Oklahoma's combination of natural resources, regulatory frameworks, and business-friendly environment make it a supportive environment for oil production.