Frequently Asked Questions
I don't know anything about oil & gas!
That's ok! We don't expect you to. We don't even expect those who work in the petroleum industry to really understand the acquisition & divestiture space of of oil and gas assets. It takes a niche set of skills and years of experience to understand the strengths and risks of target acquisitions. This is one of the reasons we have a team of professionals to review our target investments.
What does Honeguide offer investors?
Honeyguide Energy Partners looks to be exactly what we say - partners. We have investor-friendly vehicles to help people take part in a lucrative industry. The petroleum industry tends to be reserved for those groups with millions, if not billions, of dollars. We help accredited investors take advantage of tax incentives and realize a strong return by directly investing in proven oil and gas fields where upside development exists. Many times we co-invest with large capital groups so that risk is shared. We take a "lower-risk" approach to oil and gas investments.
What are the benefits of investing in oil & gas?
To name a few without getting into too much detail: Diversification. Inflation protection. Lucrative returns. Market volatility protection from downturns in the stock market. Robust tax incentives for US investors including: Depletion tax, Intangible Drilling Costs, Tangible Drilling Costs. Plenty of benefits.
What are the tax deductions for oil & gas investments?
What types of investments does HG look at?
We take a lower-risk view towards potential investments. We mainly look at assets where the geologic risk is virtually zero or there is existing proven production. The upside is realized through development drilling, uphole completions, infrastructure upgrades, and arbitrage opportunities.
Like I said, I don't know anything about oil & gas! How do I know you're making good investments on my behalf?
This is exactly why we've structured our investment vehicles to be investor-friendly. You don't know us (yet), and even if we have a conversation (set up an meeting with us!), it still doesn't prove that we'll make good investments on your behalf. That's why we have low fees (lower than any other firm out there) and we don't make money until you've recouped your investment and meet a minimum return. We've basicaly tried to "build-in" the trust element.
What's your management fee look like?
A standard 2%. Occasionally we'll have even greater cost-saving promotions!
How do I trust Honeyguide with my hard-earned cash?
Other than the built-in trust we mentioned above, with the low fees and investor-friendly return structure, we also use a third party adminstrator to handle all funds. This ensures compliance, that all protocols are run for every investor, and that funds are maintained in an account that Honeyguide owns, but the administrators control. This ensures that funds are used only for appropriate uses.
Who is Honeyguide? What kind of experience do you have?
Our firm has over 50 years of combined experience and has invested in over 1000+ wells. We've had previous positions with top oil and gas companies and banks, making investments, managing exploration teams, and making actual decisions on drilling and completion of wells. We also have an educational background across business, geology, and engineering with a pedigree from the top academic institutions in the world.
This seems too good to be true. Why are you doing this?
Retail investors have limited choices with regard to oil and gas direct investing. As an oil and gas professional myself, I wanted to put my money into something I was passionate about and where I knew I could make a great return. Every oil investment firm out there, however, did not have my best interests in mind. That and I did not trust the pedigree of the management team. Determining where to drill, and how to drill and complete a well is very much a skill that is honed with time and experience. I did not find one firm that I felt comfortable investing my money with. This is why Honeyguide exists. To provide accredited investors access to a lucrative industry that has the investor's best interest in mind.
Can I speak with you about this?
Of course. In fact, we encourage you to speak with us. We'd rather have investors feel comfortable about their investment decisions and understand what their money is going towards. If this is not the right type of investment for you, then no worries! At least we figured it out early. We do not, repeat do not, believe in twisting an investor's arm.
How long until I see a return on my investment?
Monetary returns will depend on the invesetment itself. At times, we purchase property that has pre-existing oil production on it. That means it's already cash-flowing, and we believe there is upside there we can realize. Other times, we find minority working interests where large public operators are drilling a monster well and we have the opportunity to participate for 1-2% of the well (or wells).
Our aim at Honeyguide is to 2x your money in 3-5 years. Investors should think of this as a medium to long-term investment.
What can I expect with regard to returns?
This is a good question. Our aim is to double your money is 3-5 years. With that said, we have to set expectations - if we surpass this goal, we know you'll be even more happy!
Ok, I'm convinced. Good returns AND a tax break, how do I subscribe?!
Excellent. If you'd like to speak, send us a message via our contact page. We'll send you subscription memorandum which you'll need to read thoroughly, sign and return. We'll instruct you further once this is complete.