By purchasing the right to an allocation of crude oil in one of our oil leases you enter into an agreement whereby we will produce the oil for your allocation and have it delivered it to the refinery  door.

Allocation

Your allocation entitles you to 1 barrel (approximately 42 US Gallons) of crude oil per month for 5 years. You receive 1 barrel of oil every month for the term of your allocation for the one time cost of US$ $3,800. At the end of five years your $3,800 is returned to you.

The oil lease from which your crude oil will come will be shown at the bottom of the Oil lease Allocation, Management and Delivery Document when you purchase an allocation.

How the production cost works

Production Cost & Maintenance

We are responsible for the day to day repairs and production at the oil lease, the pumping equipment and delivery of your allocation to the refinery. The cost of production and maintenance is dependent upon the cost of labor, energy for pumping and materials and can vary. The average cost of production ranges between 16% and 18% of the posted price of oil  per barrel.

How the delivery works

Delivery

We have contracted with an oil transport company which picks up the bulk crude including your allocation from the lease and delivers it to the refinery, paying special attention to the environment.

How you get your oil money

Payment for your oil

The refinery pays us at the end of the following month for all oil delivered the previous month from the leases. The oil flow per lease is recorded with the State of Louisiana and can be accessed via the internet. From this sales amount we deduct the cost of production, which is divided equally over the number of barrels of crude oil delivered from that lease and is then allocated proportionately to each allocation holder. The balance is paid into your nominated bank account each quarter being: 1 February, 1 May, 1 August and 1 November.

Each allocation holder is issued a numbered Allocation Certificate, and a username and password to access their account and the statistics for the lease from which their allocation is being produced on the internet