Investment Terms — South Texas Natural Gas Reactivation
This page summarizes the key commercial terms for participation in Safari Production Company, Inc.’s $8,000,000 Working Interest offering across two proven South Texas natural gas wells.
Up to 70% Working Interest is being offered to qualified investors, with 100% of net profits distributed to investors until full capital recovery, followed by a 70% / 30% split between investors and operator for the life of the wells.
Headline Terms
The investment opportunity is structured as a Working Interest participation in the reactivation of two existing gas wells—Mobil Fee 6 and Mobil Fee 4—on a 643-acre South Texas lease. The focus is on reactivating proven reserves with a disciplined operational and economic framework.
- Total capital request: $8,000,000.
- Working Interest offered: up to 70% WI.
- Modeled production: 17,748,720 Mcf from targeted reserves.
- Modeled revenue: $45,791,698 at $2.58/Mcf.
- Modeled gross profit: $25,047,172, with $19,090,087 to investors (70% WI).
Figures are based on engineering estimates and economic models; actual results will vary and are subject to risks described in the formal offering documents and Risk Factors.
- 100% of net profits to investors until $8,000,000 capital is fully recovered.
- Thereafter, net profits split 70% to investors / 30% to Safari Production Company, Inc. for the life of the wells.
Capital Structure and Working Interest
Capital Program
Total capital program across Mobil Fee 6, Mobil Fee 4, and contingency for operational variance and optimization.
Working Interest Offered
Offered to Angel, Accredited, Family Office, Private Equity, institutional, and specialized Oil & Gas Working Interest buyers. Safari Production Company, Inc. retains the non-offered interest and operates the asset.
Form of Participation
Participation documented via a standard joint operating agreement (JOA) and associated subscription and participation documents, subject to negotiation and counsel review.
Specific WI percentages, ownership structure, and documentation will be defined in the definitive offering materials and individual subscription agreements.
Cash Flow Waterfall and Distributions
The cash flow waterfall is designed to prioritize investor capital recovery while aligning long-term interests between investors and the operator.
- Gross Revenue: Sales proceeds from produced gas, net of royalties and applicable severance and production taxes.
- Operating Costs: Field-level operating expenses, midstream costs, and routine maintenance are deducted to determine net profits.
- Capital Recovery: 100% of net profits are allocated to investors until the aggregate $8,000,000 capital contribution has been fully recovered.
- Post-Recovery Split: After full capital recovery, net profits are allocated 70% to investors and 30% to Safari Production Company, Inc. for the remaining life of the wells.
The actual waterfall, timing of distributions, and reserve policies will be governed by the definitive JOA and offering documents. No assurance can be given that modeled cash flows will be realized.
Linkage to Economics
- Modeled 7-year revenue: $45,791,698 at a base price of $2.58/Mcf.
- Modeled 7-year gross profit: $25,047,172.
- Investor share at 70% WI: $19,090,087 gross profit (before tax).
- Sensitivity analysis available by price deck and production profile.
All figures are illustrative and must be evaluated in the context of risk disclosures and tax considerations.
Legal Structure and Documentation
Participation will be governed by standard oil and gas documentation tailored to this specific project. Investors will receive a full suite of legal and technical materials as part of their diligence.
- Subscription and participation agreements.
- Joint operating agreement (JOA) and related schedules.
- Title, lease, and Working Interest documentation.
- Technical reports, reserve summaries, and economic model.
Draft documentation will be made available to qualified investors via the Document Library / Data Room and will be subject to investor and counsel review prior to commitment.
Governance and Operator Role
- Safari Production Company, Inc. acts as operator of record.
- Day-to-day operational decisions managed by the operator under the JOA.
- Material decisions and expenditures governed by JOA provisions.
- Investors receive structured operational and financial reporting.
Governance, reporting, and decision rights are defined in the governing agreements and should be reviewed carefully by investors and their advisors.
Investor Eligibility and Suitability
This opportunity is intended for experienced, qualified investors who understand the risks associated with oil and gas Working Interest investments, including the potential for loss of capital.
- Target investors include Angel, Accredited, Family Offices, Private Equity, institutional investors, and specialized Oil & Gas WI buyers.
- Participation may be limited to Accredited Investors and/or Qualified Purchasers, depending on structure and jurisdiction.
- Minimum commitment amounts and allocation policies will be defined in the offering documentation.
- Investors should have the financial capacity to absorb a total loss of invested capital.
Final eligibility criteria will be specified in the subscription documents and will include representations and warranties regarding investor status and risk tolerance.
Risk and Tax Interface
- Commodity price volatility (natural gas) and basis risk.
- Operational, mechanical, and midstream performance risk.
- Regulatory and environmental risk.
- Tax treatment dependent on individual investor circumstances.
Investors should consult their own legal, tax, and financial advisors before making any investment decision.
Disclosures, Next Steps, and Access to Documents
This page provides a high-level summary of key investment terms only. It does not contain all of the information that a prospective investor should consider. Any actual investment will be made solely pursuant to definitive offering documents.
- Formal investment memorandum and technical appendices.
- Risk factors, tax considerations, and legal disclosures.
- JOA, subscription agreements, and governance documentation.
- Seven-year production, cash flow, and sensitivity models.
Access to detailed documentation is granted to qualified investors after execution of a non-disclosure agreement (NDA) and completion of basic onboarding steps.
Request Materials
Request Data Room Access Contact Safari Production Company, Inc. View Executive SummaryThis website is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any offering will be made solely to qualified investors pursuant to definitive documents.