Oak and Vine Upstream Energy Fund 2
Fund Overview:
Oak and Vine Capital is pleased to introduce our latest Oil & Gas Fund, Oak and Vine Upstream Energy Fund 2, a 506c offering. This fund has been created to acquire diversified holdings of Non-Operating Working Interests & Overriding Royalty Interests of middle-market opportunities (focusing on PDP & PUD) partnering with larger operators in proven basins.
Our strategy is to purchase existing, producing assets (PDP) with additional upside through “infill” drilling in proven oil & natural gas reserves (PUD) partnering with established operators, including some of the largest operators in the country (ex. Marathon, Chesapeake, Devon, etc.).
Private equity funding in oil & gas has dropped precipitously in recent years creating a gap to fund new drilling. Because of this many large value investors (e.g. Warren Buffett) are investing into these assets. Current market pricing allows for solid acquisitions of existing production at good value, without having to “pay up” for the upside in drilling.
Highlights:
Projected Net IRR: 25-30%
Equity Multiple: 4.0-7.0x
Leverage Ratio: 25-30%
Price Hedging: Partial to cover debt service
Active Tax Losses: Yes
Opportunity is for accredited investors only
$150,000 min investment*
Fund Structure:
1-Year deployment period, may extend.
We will be accepting subscriptions on a first come, first serve basis.
First year of the Fund, expect to reinvest 100% of profits into new drilling programs to compound returns.
Will target distributions starting in Year 2 and thereafter growing over the life of the Fund.
Timeline:
General Public Announcement: March 22nd
Live Q & A with Nick and Mike Sullivant from Aspen: Wednesday, March 26th 7:15pm CST
Deadline to Wire Funds: April 16th
Closing on Portfolio First Asset: 2025
Next Steps:
Additional Resources:
Videos:
Podcasts:
Fund Structure - Key Items:
We will be accepting subscriptions on a first-come, first serve basis
Capital will be accepted as acquisitions are made, and we will operate on a waitlist structure
First year of Fund, expect to reinvest 100% of profits into new drilling programs to compound returns
Target distributions start in Year 2 and thereafter grow over the life of the Fund.
Key Reasons to Invest
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EXPERIENCED SPONSORSHIP TEAM
Our sponsorship team and partners have extensive experience in operating and engineering on oil & gas assets for the last 40 years, with a 5-project track record.
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MIDDLE MARKET OPPORTUNITIES
Given target size of fund and lack of capital market activity, we’ll be able to participate in larger assets in proven basins with larger operators.
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CASH FLOW + TOTAL RETURN
Our fund strategy will combine a focus on existing, producing assets at good values, with additional upside through drilling. We’re targeting a mix of distributions and reinvestment into new drilling to compound returns.
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TAX BENEFITS
Numerous tax benefits for investors including Intangible Drilling Costs, Depletion & Depreciation.
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FAVORABLE FUNDAMENTALS
Lower global inventories and minimal domestic investment in production, along with strong projected fossil fuel demand creates potentially favorable economic fundamentals.
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CO-INVESTMENT
Aspen Funds and Co-sponsor management teams will be investing personal funds in this Fund as limited partners creating an alignment of interests with our investors.