FIG Tree Capital Ventures (FIG) is a Texas-based venture capital firm, with energy assets in the Williston Basin (Bakken/Three Forks Shale) of North Dakota, The Woodbine Formation of South East Texas, and The Cotton Valley/Bossier Haynesville of East Texas. The company has announced a unique product structure for clients who are seeking to directly invest into the oil and gas industry.
Ryan Wright, FIG Tree Capital Ventures CEO, recently had this to say about the company’s oil fund investments: “Our Drilling and Acquisition Funds provide our clients with direct investment opportunities in oil and gas that are consistent with an industry or wholesale approach. Rather than participating in a single well, or a group of wells in which the investor owns just cash flow from a depleting source, our Funds put investors in the position of directly owning the valuable acreage. This way our partners aren’t just relying on a declining cash flow stream and tax benefits to generate their return on investment. Our Funds have the ability to create valuable properties via leasehold ownership and proven reserve value. Our partners can choose to divest of it when the market timing is right in order to achieve a capital gain on top of the cash flow received during the hold time. With this structure, investors are involved in the decisions and they understand the actual costs associated with the development. We believe this product design is educating its investors and setting the bar for fairness.”