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Optimum 7 Well Joint Venture

Income
Converse County, WY
Target Return
4.00%
Minimum
$87,500
Hold Period
15 Years
Optimum Energy PartnersSponsored by Optimum Energy Partners · $100M AUM
Overview

Optimum 7 Well Joint Venture is an oil and gas drilling program structured as a Texas joint venture, acquiring minority working interests across seven horizontal wells targeting two established onshore basins in the United States. The venture targets six wells in the Powder River Basin in Converse County, Wyoming, operated by WRC Energy, and one well in the Anadarko Basin in Dewey County, Oklahoma, operated by Mach Natural Resources. The program provides accredited investors direct exposure to domestic energy production with the tax advantages associated with working interest participation.

Why This Opportunity

  • Tier-one operators: Wells operated by WRC Energy (one of the largest private operators in the Powder River Basin with 170,000+ net acres in the core of the play) and Mach Natural Resources (independent upstream operator focused on the Anadarko Basin across Oklahoma, Kansas, and the Texas panhandle)

  • Proven offset production: Nearby WRC key wells in Converse County have recorded average 30-day peak production of 1,478 BOE per day and average EUR of 1,006,841 BOE across recent completions

  • Active basin exposure: 6 Wyoming wells target the Niobrara (5 wells) and Shannon (1 well) formations in the Powder River Basin. 1 Oklahoma well targets the Red Fork formation within the Cherokee Group in the Anadarko Basin

  • Turnkey cost structure: Drilling, testing, and completion costs fixed under the turnkey joint venture agreement, providing cost visibility at subscription with no unexpected capital calls for initial operations

  • Tax-advantaged structure: Working interest participation provides access to intangible drilling cost deductions (typically 60-80% of drilling costs deductible in the year incurred), tangible drilling cost depreciation, and percentage depletion allowances tied to ongoing production

  • Sponsor alignment: Optimum Energy Partners contributes 1% of initial venture capital and ties compensation to turnkey contract execution

  • Projected returns: 4.0% target return with a 1.60x equity multiple over a 15-year hold

Deal Structure

  • Total program size: $8.05M

  • 23 total joint venture units offered at $350,000 per full unit

  • Fractional Unit options: 1/4 Unit ($87,500), 1/2 Unit ($175,000), full Unit ($350,000)

  • Minimum investment: $87,500

  • Structure: Texas joint venture, with Optimum Energy Partners serving as Managing Venturer

  • Offering: 506(c) Reg D, accredited investors only

Working Interests and Well Breakdown

  • Working Interest per Unit: ~0.1957%

  • Net Revenue Interest per Unit: ~0.1467%

  • Monthly lease operating expenses: $40,000 (program-level)

  • Horizontal length: 2 to 2.5 miles per well

Powder River Basin (Wyoming) – 6 Wells

  • Operator: WRC Energy

  • County: Converse County

  • Formations: Niobrara (5 wells) and Shannon (1 well)

Anadarko Basin (Oklahoma) – 1 Well

  • Operator: Mach Natural Resources

  • County: Dewey County

  • Formation: Red Fork

Landowners retain approximately 25% in royalty interests on each well.

Key WRC Offset Wells (Converse County)

  • Patterson 3874-22-15-1NH: First production October 2022, 2.0-mile lateral, 1,563 BOE 30-day peak IP, 1,386,483 BOE EUR

  • Misty Moon Lake 3874-17-20-1NH: First production July 2024, 2.0-mile lateral, 1,682 BOE 30-day peak IP, 1,095,075 BOE EUR

  • Manning 3874-28-21-1NH: First production January 2024, 2.0-mile lateral, 1,558 BOE 30-day peak IP, 1,104,403 BOE EUR

  • Rebel Fed 3874-16-9-1NH: First production January 2024, 1.5-mile lateral, 1,382 BOE 30-day peak IP, 898,109 BOE EUR

  • 7 Brothers Lake 3874-31-30-1NH: First production December 2024, 2.0-mile lateral, 1,207 BOE 30-day peak IP, 550,133 BOE EUR

Tax Benefits of Working Interest Participation

  • Intangible Drilling Costs (IDCs): Generally 60-80% of total drilling costs are 100% deductible in the year incurred

  • Tangible Drilling Costs: 100% deductible, depreciated over a 7-year schedule

  • Depletion Allowance: The "small producer exemption" excludes 15% of gross income from oil and gas wells from taxation for qualifying participants

  • Active Income Treatment: Working interests are classified as active (not passive), meaning net losses can be offset against other forms of active income such as wages, interest, and capital gains

  • AMT Exemption: Excess intangible drilling costs are specifically exempted as a preference item on the alternative minimum tax return

Tax benefits vary by participant circumstances. Investors should consult their own tax advisors regarding eligibility and specific tax outcomes.

How Allocation Works
$25,000,000
Offering Size
÷
$87,500
Minimum
=
285
Investor Limit
285 is the investor limit if everyone invests the minimum. Since many invest more, the offering typically fills with fewer.
Project Your Returns
The Market

Converse County, WY

The venture's capital is deployed across two of the most prolific onshore oil and gas basins in the United States: the Powder River Basin in Wyoming and the Anadarko Basin in Oklahoma.

Powder River Basin, Wyoming (6 Wells)

  • Geologic structural basin spanning southeast Montana and northeast Wyoming, approximately 120 miles east-to-west and 200 miles north-to-south

  • One of the most active onshore oil producing regions in the United States

  • Contains major oil and gas deposits including the historically significant Salt Creek Oil Field

  • Active plays include the Niobrara formation, Turner sandstone, Mowry formation, and Shannon formation sequences in the eastern basin

  • Recent USGS estimates put recoverable Niobrara resources at 227 MMBO of oil, 227 BCF of gas, and 13.6 MMBNGL of natural gas liquids

  • Mowry formation estimated recoverable resources of 198 MMBO, 198 BCF, and 11.9 MMBNGL with modern fracturing techniques

  • Shannon Formation has become an important oil and gas reservoir across two dozen+ Powder River Basin fields

  • Wyoming maintains a regulatory environment historically supportive of domestic energy development, with consistent permitting activity and operational continuity

  • Converse County sits within one of the most active development corridors in the basin, supported by mature infrastructure, experienced service providers, and proven geology

Anadarko Basin, Oklahoma (1 Well)

  • The deepest Phanerozoic sedimentary basin in North America

  • The Cherokee Group has produced over 1.2 trillion cubic feet of gas to date

  • Red Fork Formation (deepest productive member of the Cherokee Group) has predicted reserves of 876 BCF of gas

  • Dewey County sits within the western Anadarko Basin, one of the most active development corridors supported by Mach Natural Resources and other tier-one operators

  • The basin benefits from established pipeline infrastructure, refining capacity, and a skilled energy workforce, reducing operational uncertainty compared to frontier exploration areas

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Target Return
4.00%
Equity Multiple
1.60x
0 Views
285 Investor Limit

Initial Investment ($)

$87,500$87,500$1M

Assuming your selected investment, after 15 years you could expect a return of:

Projected Return (15 yrs at 4% IRR)
$140,000
Irvine, CA 92612

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