Re: FW: SK agreement... summary
Subject: Re: FW: SK agreement... summary
From: Barrett Brown <barriticus@gmail.com>
Date: 5/28/09, 15:41
To: Robert Brown <rbrownbarachel@hotmail.com>

Here's the edited version:

SK & Co. Oil and Gas Partners VI, LP was initially formed to develop the proven reserves of two Texas oil and gas fields located in the towns of New Waverly and Thermopylae. Both fields were discovered in the sixties and partially developed, but despite holding large proven natural gas reserves, many potential drilling sites in the area remained unexploited due to the lack of available pipelines; additionally, the relatively low of price of natural gas at that time discouraged any capital-intensive development. With natural gas now selling at a much more favorable rate, though, these sites have consequently become worthy of development.

The New Waverly Field covers over 4000 acres located about 70 miles northeast of Houston in San Jacinto County. The Thermopylae Field is made up of 13,000 acres located 100 miles west of San Antonio in Real County. Among the available reserves to be found at these sites, Jackson, Yegua, and Ellenburger proven reserves will be developed first, being shallower zones of the sort that will produce significant cash flow (5 + to 1) with very low drilling risk. Reinvesting this cash flow (minus the 1% monthly distribution to our limited partners) will generate ample revenue with which to continue developing both these fields without need for additional capital contributions. As additional wells are drilled and cash flow continues to increase, excess revenue will be distributed back to the limited partners, with all invested capital expected to be returned within 36 to 48 months. With over 100 drilling locations available to us in these areas, we expect the development of these fields to continue for 5 or 6 years. Each dollar invested is expected to generate 3 to 5 dollars back to the investor by the end of year 5. The deeper zones (Wilcox, Woodbine) will be developed later on in the process, offering additional returns to our investors over a longer period; these deeper wells are expected to produce for somewhere between 20 and 40 years, thus allowing for continued distributions back to the investors for the life of the wells.

The deal structure of SK & Co. Oil and Gas Partners VI, LP is a ten million dollar capital formation comprised of 100 units @ $100,000 per unit. A 1% monthly distribution of capital invested (for example, $100,000 will yield 12% annually or $1000 per month, beginning the month after capital is invested).

All oil and gas revenue revenue (minus the 1% distribution) will be reinvested back into the development of both fields.

The limited partners will receive 80% of all cash distributions until 100% of their original capital has been returned, with a 50/50 distribution thereafter between the limited partners and the general partner.

The majority of the cash flow over the first 18 to 24 months will be reinvested in the drilling program; thereafter all revenue over what is needed for the drilling budget will be distributed back to the limited partners. Return of all capital invested is expected within 36 to 48 months.

As mentioned above, each dollar invested should generate between $3 to $5 dollars back over the first 5 years of the investment. As some of these deeper wells produce for more than 30 years, continued distributions could easily generate an additional $3 to $5 and possibility much more over the life of the fields.

The general partner will be responsible for overseeing the operator of the field, distribution of all production revenue, and keeping the books and records for the operation, as well as sending out annual statements and required tax information.


On Wed, May 27, 2009 at 8:19 PM, Robert Brown <rbrownbarachel@hotmail.com> wrote:
This is a draft. It need to be edited.

Thanks Dad

From: mbiv@att.net
To: rbrownbarachel@hotmail.com
Subject: Re: SK agreement... summary
Date: Wed, 27 May 2009 19:47:52 -0400

Robert,
This looks good but needs to be edited. you should send it to Barret and let him do it

Michael L. Bivins
Managing Director/Europe
SK & CO
Oil & Gas Partners
3811 Turtle Creek Blvd.
Suite 850
Dallas, Texas 75219
Cell: 310.384.3873
Main: 214.219.3210
Madrid: 63 802 02 64
Fax: 214:219.3223







On May 27, 2009, at 3:05 PM, Robert Brown wrote:


 
From: rbrownbarachel@hotmail.com
To: head611@swbell.net
Subject: FW: SK agreement... summary
Date: Wed, 27 May 2009 10:08:15 -0400



From: rbrownbarachel@hotmail.com
To: pingzegao@gmail.com
Subject: RE: SK agreement... summary
Date: Wed, 27 May 2009 10:07:42 -0400

Patsy and Ping,
 
Here is the summary for SK VI. Let me know what additional info. you ned or with questions. 
 
Good Luck Robert
 
 
 
 
SK& Co. Oil and Gas Partners VI, LP was formed to develop the proven reserves of two oil and gas fields in Texas, New Waverly and Thermopylae. Both fields were discovered in the sixities and partially developed, but many drilling sites remained undrilled. These offset locations hold large reserves of natural gas, but were not developed in the sixities because there were no pipelines near these fields to transport the gas, and the price was extremely low. Today, much higher natural gas prices, and pipelines adjacent to these fields make these infield drilling opportunties very profitable.


The New Waverly Field covers over 4000 acres about 70 miles northeast of Houston in San Jacinto County. The Thermopylae Field has 13,000 acres and is 100 miles west of San Antonio in Real County. The Jackson, Yegua, and Ellenburger proven reserves will be developed first. These shallower zones will produce significant cash flow (5 + to 1 ) with very low drilling risk. Reinvesting this cash flow ( minus the 1% monthly distribution to our limited partners ) will generate ample revenue to continue developing both these fields without additional capital contributions. As additional wells are drilled, and cash flow continues to increase, excess revenue will be distributed back to the limited partners with all invested capital expected to be returned within 36 to 48 months. With over a 100 drilling locations, we expect the development of these fields to continue for 5 or 6 years. Each dollar invested is expected to generate 3 to 5 dollars back to the investor by the end of year 5. The deeper zones (Wilcox, Woodbine) that will be developed later, and offer additional returns to our investors. These deeper wells have production that can last 20, 30, even 40 years, with continued distributions back to the investors for the life of the wells.


The deal structure of SK & Co. Oil and Gas Partners VI, LP is a ten million dollar capital formation comprised of 100 units @ $100,000 per unit. A 1% monthly distribution of capital invested ( example $100,000 will yield 12% annually or $1000 per month starting the month after capital is invested).
All oil and gas revenue revenue (minus the 1% distribution) will be reinvested back into the development of both fields.
The limited partners will receive 80% of all cash distributions until 100 % of their original capital has been returned. A 50/50 distribution there after between the limited partners and the general partner.
The majority of the cash flow over the first 18 to 24 months will be reinvested in the drilling program, there after all revenue over what is needed for our drilling budget will be distributed back to the limited partners. Return of all capital invested is expected within 36 to 48 months.
As mentioned above, each dollar invested should generate between $ 3 to $5 dollars back over the first 5 years of the investment. As some of these deeper wells produce 30 plus years, continued distributions could easily generate an additional $3 to $5 and possibility much more over the life of the fields.
The general partner will be responsible for over seeing the operator of the field, distribution of all production revenue, and keeping the books and records for the operation, as well as sending out annual statements and required tax information.
 
Date: Tue, 26 May 2009 19:12:03 +0800
Subject: SK agreement...
From: pingzegao@gmail.com
To: rbrownbarachel@hotmail.com

Hi Robert,

We translated the 33 pages agreement for the coal miners, but a lot of them don't make sense in Chinese, and it's very long. Would you please summarize it in simple words in a page or two.  Because it's very hard to understand, and that confuses the coal miners, and prevent them from moving forward quickly.

We want to meet them again before Patsy leaves for Dallas very soon. So would you please help us? I know you're busy with wedding etc. Sorry we will miss the reception.

Patsy and Ping