Being closely associated with strong well-seasoned partners is crucial for investing in this industry. A key tenent of the Fund's approach to investment decision-making is to invest directly via our PREFERRED PARTNERS who are integrated into the tight-knit West Texas oil & gas fraternity. We co-invest with proven specialists.
In short, the essence of the Fund is simply to piggyback on the Preferred Partners' expertise and their relationships. The Fund will ONLY invest in projects where the Preferred Partner has invested its own capital.
The Preferred Partners are, in essence, the gatekeepers on each Fund's investments. They have long-standing relationships in their insular marketplaces and they are highly experienced in selecting desirable projects that will be suitable for themselves and a Fund. (We also have two Special Partners who are similar in status to the Preferred Partners.)
Many of their deals tend not to become available out of Oklahoma or West Texas. Some of the Fund's projects may be "prospects" sponsored by these Preferred Partners which means they will be the operating partner. However, others are generated by third parties. The Funds enjoy a right of first refusal to co-invest with our Preferred Partners in such deals. Because of this access, many deals in which the Funds participated are essentially excluded to others (e.g., Rattlesnake Mound, Nimrod West, East Kenedy, South Spur, Jimmie Herring, Rooke Ranch).
Although Oklahoma and West Texas is the area of greatest activity, Rutter and Wilbanks ("R&W") and has ranged beyond the Permian Basin. R&W has developed numerous prospects in Alaska. R&W continues to network with its traditional contacts in the business with the purpose of developing prospects throughout the "lower 48" in which it traditionally deploys its own family capital.