Breitling Energy Corporation (OTCBB:BECC) (“Breitling Energy”) announces a new strategic relationship with Patriot Energy, Inc. (“Patriot”) of Dallas, Texas to expand Breitling Energy’s Asset Management division. As part of its unique business model, Breitling Energy’s Oil and Gas Management sub-division has existing industry partners that syndicate or de-risk royalty or working interests to a network of third-party industry partners or institutional investors. This sub-division generates on-going revenue and increases reserve value through management fees, carried interests in the properties acquired and/or prospect fees.
Under an Administrative Services Agreement (the “Agreement”), Breitling Energy will provide administrative services and access to certain of Breitling Energy’s oil and gas prospects for acquisitions of working interests and/or royalty interests. In exchange for the services, Patriot will pay Breitling Energy $300,000 per month for Administrative Services, $250,000 per prospect fee, and up to a 25% carried interest in each prospect acquired by Patriot. The Agreement and further details will be filed in a Form 8-K.
“We are very pleased to announce this new strategic relationship with Patriot Energy for a number of reasons,” said Chris Faulkner, Breitling Energy’s CEO, Chairman and President. “This is a team of experienced oil and gas professionals who are extremely good in their fields of expertise and they are going to add substantial value to our operations at Breitling Energy, allowing us to expand our growing business,” Faulkner added.
Unlike the traditional exploration and production operating model, Breitling Energy diversifies its risk through a process of selling working interests in its wells. This model recovers Breitling Energy’s investment capital, and increases cash flow and reserves through management fees, prospect fees and a carried interest. In a climate of price uncertainty, this zero-debt, reduced-risk strategy has enabled Breitling Energy to look forward into 2015 without adjusting or reducing its planned development strategy.
Patriot Energy, Inc. is a private, independent oil and gas company specializing in working interests and royalty interests for private accredited investors. Based in Dallas, Texas, Patriot Energy is engaged in the development of high-probability, lower risk onshore oil and gas properties. The Company’s growth strategy primarily relies on leveraging management’s technical and operations expertise to offer non-operating working interests and royalty interests to accredited investors and institutions. Patriot Energy is currently focusing in the Permian Basin of Texas. For more about Patriot Energy visit: at patriotenergy.com.
Faulkner is in Mexico for a two-day conference features a dual track looking at the hard issues of implementing reform, the new opportunities in the oil and gas and electricity sectors, and the best ways to form alliances within the sector.
“I can’t compliment President Pena Nieto enough for his energy vision,” Faulkner added. “With the beating we’ve taken politically here in the U.S. over the last six years, it’s refreshing to work with a leader who understands what energy means for his people, his nation, and the world. President Pena Nieto is being strategic and Mexico will reap the benefits for decades to come. I only wish for the same politically here in America.”