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Take a look at our frequently
asked questions

General FAQs

New investments begin earning income the very first day after funds are cleared.  This is in the form of a fixed interest rate, currently 6% APR. After a minimum time span, or vesting period, your account will begin receiving its proportionate share of income from all the wells in the partnership portfolio.

It takes an incredibly long time to develop multiple oil and gas well projects staggered throughout the year.  Paying interest like this takes some of the sting out of the wait while we fully employ your capital. This practice is unique to the industry.

Typically, well-generated income begins during the 5th quarter after making your investment. Even after well income starts we are committed to providing a minimum of 6% ROI for up to 24 months after the date of your subscription.

The vesting period is designed to give us time to judiciously apply new capital into forthcoming projects. It takes a long time to prepare a site, drill, test, complete and, if it’s successful, finally bring a new well into production. [See Revenue Path.] Since funds are spread over multiple projects, it could take several years to fully expense the new capital infusion.

This vesting period also protects partners that are already receiving well income by not diluting their current income stream from additional partners before new well revenue is added to the overall cash flow.

 

Interest payments initially come out of our Contingency Fund, which is set aside to cover cash calls for cost overruns, recompletions, and major well reworks. ‘First fruits’ from new wells are used to reimburse the Contingency Fund for the interest that was paid out before any of that income gets distributed to vested partners.

 

EPF-IX partners have earned 17.0% to 39.8% per annum! Typically, this is tax-free income through at least the first 100% of payback. One of our charter partners achieved 100% payback in just 42 months, yielding a 2.4% average monthly rate of return.

Visit our Associate’s Menu by registering to review detailed fund performance data. Of course, it should go without saying that past performance is no guarantee of future portfolio outcomes, nor is there any warranty implied thereupon.

Oil and gas wells are widely known for their potential to provide very lucrative returns. Notice the word ‘potential’.  The fact is, the majority of wells drilled are either non-commercial dry holes, or are marginal producers at best. This is why we spread our investments over a multiplicity of projects doing our best to target cream-of-the-crop wells.

Over the years we have had a number of wells provide us with double-digit monthly returns and several multiples of payback. These ‘elephant’ wells as we like to call them coupled with our better than industry average completion rates allow our blended well portfolio to provide the documented and verifiable returns that EPF-IX has provided to its partners.

Absolutely! But first you will need to ‘roll’ your Traditional IRA over into a Self-directed IRA account. It is a simple process that entails setting up a Self-directed account through a third party custodian. This will take a couple of weeks to process. Once your IRA has been transferred into a custodial account you can ‘direct’ funds into any legitimate investment of your choosing. You are no longer restricted to a limited menu of investment choices.

We have found SunWest Trust, Inc. to have reasonable fees and they are quite helpful.

Self-directed IRAs are perfectly suitable and fully qualified by the IRS to invest into Energy Partner’s Fund-IX. What’s more, EPF-IX is especially accommodating to accounts established with IRA-sourced funding by providing such features as:

  • a 5% premium on well earnings to compensate for being tax-deferred money,
  • the option to receive fixed interest earnings, currently 8% APR, in lieu of taking vested well earnings, and
  • the option to earmark all income earnings for re-investment thus compounding earnings potential.

Well income is booked to each vested partner’s account every month. Earnings checks along with an income statement and capital account statement are distributed every quarter.

Potential investors come to us exclusively through client referrals from Partners, Finders, Registered Investment Advisors, Certified Financial Planners, Placement Managers, or independent Series 22 Oil & Gas Well Brokers.

We are restricted by the U.S. Securities and Exchange Commission from engaging in general solicitation or advertising.

The simple answer is they cost too much! Just to get approved by a single Broker-Dealer can cost upwards of $150,000. Then, all expenses in marketing to the individual brokers would be burdened to the investment fund. On top of all this there are the commission charges, typically 8% that the Broker-Dealer requires off of any sales. We would much rather apply the maximum amount of funding capital as possible to our well development projects

We have found that brokers themselves would love more than anything to be able to sell a highly successful investment product such as Energy Partner’s Fund-IX. However, they are not allowed to ‘sell away’ any investment product not specifically approved by their Broker-Dealer.

There are two basic reasons a broker will not recommend our investment product. The broker is not allowed to sell any investment that their governing Broker-Dealer has not approved. This is called ‘selling away’. Secondly, they are afraid of possibly being accused of committing an ‘error and omissions’ blunder.
 
Some Financial Advisors are afraid to recommend this investment due to unfamiliarity with it and concern over inadvertently committing an error or making an omission.

Energy Partner’s Fund-IX is structured as an ‘Open Offering’. This means there is no cap on the amount of new capital that can be raised. The reason for this is that we are not selling specific, pre-defined well projects. Rather, we are continually applying newly received capital to secure working interests in an ever-increasing number of new wells to add to the existing EPF-IX portfolio.

The amount of funds appropriated to an individual well is contingent on the available pool of investment capital and the rate of influx of new funds. Currently, our “rule-of-thumb” algorithm is to dedicate roughly 20% of the available capital to a specific project.  What this translates to in working interest of an individual well is contingent on the total project cost – leasehold, geology, AFE, projected P&A, and contingency for inevitable cost overruns.

Fundamentally, there are two reasons why Energy Partner’s Fund-IX is structured as a Limited Partnership. First, the IRS recognizes a partnership as a pass-through business entity. This allows EPF-IX to not only pass along all well income, but tax deductions also. Likewise, tax liability resides with the partner. The partnership does not withhold any money from income for taxes.

Secondly, a Limited Partnership limits the individual partner’s legal liability to the amount of their investment.

Nearly two decades ago started out with the intent of providing a means for friends, relatives, and colleagues to enjoy the same great rewards of oil and gas well investing that we had been blessed with. The objective was expanded to include others who likewise desired to invest in the same energy arena, but with greatly diminished risks as opposed to traditional well investing.

Here is a top-10 summary of our well selection guidelines:

  1. Through dollar-cost-averaging spread your drilling budget over a diverse spectrum of well projects. DO NOT, UNDER ANY   CIRCUMSTANCE AND NO MATTER HOW PROMISING A PROSPECT APPEARS TO BE, EXCEED YOUR PRESET MAXIMUM PER WELL ALLOCATION.
  2. Try to include as many of the safer offset wells and infield drilling prospects in your portfolio as possible.
  3. Exploratory wells as a minimum should have multi-pay zone objectives, validated
    3-D seismic interpretation and associated well control.
  4. Only participate in wells that will “probably” (as opposed to possibly) yield a blended annual tax-weighted return through payback of at least 30% and accumulate a reserves base of 3Xs ROI through the life of the portfolio.
  5. Plan on a 50% completion rate – continuously strive for 60% or better.
  6. The ideal crude oil to natural gas production ratio for the portfolio should be 1 bbl : 5mcf
  7. Anticipate up to 20% in drilling/completion cost overruns.
  8. Expect 15-20% annual production depletion on a balanced well portfolio.
  9. Understand that each well is a separate business unit subject to operating expenses and taxes and that any unprofitable well(s) must be quickly identified and divested.
  10. And last, but certainly not least, know your prospect generators and operators. Deal only with those that have proven track records and reputations for honest representation and efficient management.

No. We go about securing partial working interests in wells that are developed and operated by other oil and gas exploration companies. We search for only the absolute best of the best of prospects.

We can’t imagine this ever happening. Over the years we have joint ventured with nearly 100 different Exploration Partners with in-house teams of landmen, geologists, geophysicists, petroleum engineers, and project managers. Many are Oil and Gas Companies that you likely are familiar with such as Kerr-McGee, Texaco, Exxon, Mobil, and Hunt Petroleum to name just a few. Among our network of prospect generators and operators there are literally hundreds of well opportunities available for us to choose from at any given time.

Our limitation on projects is self-imposed. We are extremely discriminating as to who we will partner with and which wells we participate in. Our preference is for conventional drilling projects, so we avoid Wall Street resource plays such as the Bakken shale oil or Marcellus gas shale drilling that you often hear about.

We believe in full disclosure and transparency. Our paramount desire is that before anyone decides to invest in Energy Partner’s Fund-IX that they have plenty of opportunity to understand what they are potentially getting into.

So far, all of our wells have been located domestically within the Continental U.S. with the majority being found in the highly productive Gulf Coast area of Texas and Louisiana.

Clarke Energy Fund Management, LLC is a Virginia limited liability company that was organized February 1, 2007 to be the Managing General Partner of energy fund partnerships.

The U.S. Security and Exchange Commission (“SEC”) allows us to provide this information only upon your request. Therefore, website Login is made available strictly to EPF-IX partners and affiliates and those that elect to go through registration.

  1. Thoroughly familiarize yourself with how our investment program works by reviewing the information provided on this website.
  2. Request a copy of the Private Placement Memorandum and Partnership Agreement and review.
  3.  Be sure you get answers to any and all questions you have about investing in Energy Partner Fund-IX.
  4. Plan on investing discretionary funds only.
  5. Provide 3rd party verification that you are an Accredited Investor.
  6. Return to CEFM an executed set of subscription documents.

Note: Clarke Energy Fund Management as Managing General Partner will adhere to the suitability standards imposed by SEC Rule 506 of Regulation D in evaluating potential investors.  Accordingly, participation as a Partner will be limited to only those persons who represent that they are willing and able to assume the risk of a highly speculative investment of limited liquidity.  The foregoing requirements are only minimum suitability standards, and the satisfaction of those standards by an investor does not necessarily indicate that an investment in the Units is suitable for such person.  The Managing General Partner has complete discretion in determining whether or not to accept any particular subscription.

Energy Partner’s Fund-IX is a private placement offering having filed Form D, Rule 506 with the SEC. Under this rule, EPF-IX may offer and sell securities to an unlimited number of “accredited investors” (generally wealthy or institutional investors, as defined by Rule 501(a) of Regulation D) and to no more than 35 non-accredited investors who meet certain “sophistication” requirements.

Therefore, the requirement that EPF-IX must take “reasonable steps” as issuer to verify a purchaser’s status based on the type of Accredited Investor that the purchaser claims to be.

We take great pleasure in overcoming challenges, analytical exercise, and the fruits of a job well done. Our greatest satisfaction, however, comes from providing the utmost in service value to our partners and being able to conduit unsurpassed investment earnings to them.

Got a question we haven’t answered? Contact Us

Disclaimer: Nothing published by CEFM should be considered personalized investment or tax advice. Past performance is no guarantee of future portfolio outcomes, nor is there any warranty implied thereupon.

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Important Notice:

Information is limited to the capabilities CEFM offers as originator and administrator of Private Placement Offerings and is not a solicitation to buy or an offer to sell any securities. Such
solicitation or offer will only be made to qualified Sophisticated or Accredited Investors via confidential Private Placement Memorandum in accordance with SEC Regulation D, Rule 506.

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