Investor Info
Private financings in late 2005 provided seed capital to commence operations. Subsequent financings in 2006 and 2007 provided the necessary capital to establish a land base and commence drilling operations. In 2008 Just Freehold successfuly raised additional capital (convertible preferred shares w/ dividends) to accelerate the equipping and tie-in of its wells and also raised additional leasing capital through its Just Freehold Land I Limited Partnership.
In today’s market investors are hard pressed to find an investment that is secure, tax advantageous and provides for a significant future income stream with no further capital contribution requirements. The publicly traded energy income trusts were probably the closest to providing such investment attributes but the new tax legislation has effectively eliminated the tax advantage and in consequence the long term viability of energy income trusts. Just Freehold has structured an innovative financial vehicle designed to replace income trusts – the Just Freehold Drilling Limited Partnership.
The Just Freehold Drilling Limited Partnership (Drilling LP) will participate with Just Freehold Energy in drilling, completing and tying in a suite of wells on high quality freehold mineral lands leased by Just Freehold Energy and Just Freehold Land I Limited Partnership. For each well location, the mineral rights have already been leased, the geological evaluation completed, pipeline tie-ins scoped out, and costs estimated. In this way the Drilling LP investors knows exactly what they are investing in.
Investors who purchase units in the Drilling LP will receive tax write-offs (100% of investment over life of the program) and a future income stream designed to significantly exceed alternate investments. To provide a ‘win-win’ for both Just Freehold and the investor in the Drilling LP, the investment vehicle will be structured on a program pay-out basis such that the Drilling LP investor will receive a very high proportion of well revenue before payout (quick recovery of investment capital) and a more modest but nonetheless substantial proportion thereafter. The structure will essentially mirror conventional industry partner relationships except that the investor will receive a greater earned interest in each well’s production and will have no exposure to future cash calls associated with such things as well workovers or abandonment and reclamation. At current gas prices Drilling LP investors will make a healthy return on investment but more importantly will be positioned to make an exceptional return with increasing gas prices.
If you would like to take advantage of this current opportunity to invest in the Drilling Limited Parntership please give us a call or send us an e-mail.
JFEC continues to earn its reputation as the freeholder's preferred energy company, making it easier for freehold mineral owners to become part owners of their energy company and driving hard to get their mineral rights drilled. Since introducing the lease-for-shares program in 2008, approximately half of JFEC's total lease bonus payments have been in the form of JFEC shares. Just Freehold is proud to welcome all these freehold mineral owners into the company and is working hard to both get their wells drilled and increase the value of their JFEC shares.