“I believe fundamental honesty is the keystone of business.”
– HARVEY FIRESTONE
Industry Partner Basics
Arrow Crude is obligated to provide the following key items of information which we believe can be helpful in assisting potential industry partners regarding some of the financial and regulatory aspects of the oil industry and how they may relate to you. Please review the following and feel free to contact us directly with any further questions you may have.
Regulation D Rule 506(b)
Arrow Crude's drilling projects are private limited partnership offerings which rely upon a Regulation D Rule 506(b) exemption from securities registration pursuant to Section 4(a)(2) of the Securities Act.
Accredited Investors Only
Arrow Crude will only accept subscriptions from an individual or entity that is qualified as an ‘accredited investor’ as defined in Regulation D.
A Private Placement Memorandum may be available to be sent for qualified, accredited entities or individuals who are also deemed ‘sophisticated investors’; meaning they must have knowledge and experience in business matters which enables them to properly consider the merits and risks of a prospective investment.
Investments in oil and gas are speculative and involve a high degree of risk. There are no assurances whatsoever that any project wells will be successful. Any potential investor should carefully consider the risks described in the Private Placement Memorandum before investing. The possibility exists that an investor can lose all or part of their investment in the project.
Possible Tax Advantages
Investors may have basic tax considerations which are applicable to well drilling programs. Arrow Resources INC strongly recommends that any potential investor consults their personal tax professional for advice regarding related tax information.
Working Interest (WI)
Ownership in the lease itself, including the right to drill and produce oil or gas. Working Interest owners fully participate in the profits of a successful well and pay for all costs of drilling and operating wells, including paying royalty owners.
Net Revenue Interest (NRI)
The total revenue interest that a party owns in an oil and gas lease, well or drilling unit. For example, if ABC Oil Company owns 100% Working Interest and XYZ Landowner is entitled to a 25% royalty, then ABC Oil Company’s NRI is 75% and XYZ Landowner’s NRI is 25%. If ABC Oil Company owns 50% Working Interest and XYZ Landowner still owns 25% royalty, ABC Oil Company’s NRI is 37.5% (or 50% reduced proportionately by XYZ Landowner’s 25% royalty).