First in line. Paid from production.
- $800,000
- Investment amount
- 36 months
- Target repayment — earliest investor classes
- 2.25%
- Target annual distribution, $18,000 a year
- 35% of net profits
- Investor share, after all classes are repaid
Investor capital is targeted for repayment from oil and gas production cash flow rather than a future refinance or asset sale. Earlier investor classes receive priority for both job allocation and return of capital, and no profits are distributed from the company until every investor class has received its capital back.
The NCE receives a 9% annual dividend; after NCE operating costs, the target distribution to investors is 2.25% a year. An investor’s annual distribution continues after their own capital is returned, until all classes have been repaid. Investors then participate collectively in 35% of distributed net profits from ongoing production.
Repayment is a target, not a guarantee. The EB-5 required two-year capital sustainment period runs concurrently within this timeline.
Investors who file earlier are placed in earlier classes — first for job allocation, and first to be repaid.
How your investment economics work
The investment is designed around three stages: annual distributions while investor capital remains invested, targeted return of principal from production cash flow, and ongoing participation in NCE profits after all investor classes have been repaid.
- Annual distributions
- Investors receive their share of the NCE’s annual dividend while their capital remains invested.
- Return of capital
- The earliest investor classes have a targeted 36-month repayment period. Later classes are repaid after earlier classes and may remain invested longer.
- Profit participation
- Once all investor classes have received their capital back, investors continue participating in the NCE’s share of ongoing production profits.
Repayment timing and distributions are targets, not guarantees, and depend on production performance, operating results and commodity prices. See the offering documents for complete terms.
Why 36 months
A 36-month repayment target
EB5 Energy targets a 36-month repayment timeline for the earliest investor classes, structured around wells that generate cash flow from the first month of production rather than from a future transaction.
Each well costs approximately $4.5 million to complete. At $60/bbl oil and $2.50/Mcf gas — the repayment case, each well is projected to generate approximately $12.6 million in net revenue over its producing life, and just under half of that arrives in the first three years.
Repayment and distribution targets are based on production and pricing assumptions.
By comparison, real estate EB-5 projects often require five or more years to repay investors, and repayment depends on the sponsor being able to refinance or sell the property.
Run the numbers yourself
A well’s economics come down to two things: the price of what it sells, and how much it produces. Production is the harder one — until a well has run long enough to establish a stable decline curve, its best month is the proxy we use. Move any of the three below and the figures update; royalties, taxes and operating costs stay at the project’s assumptions.
Repaying the earliest investor classes within 36 months assumes oil averages $60 over that period.
The same case assumes gas averages $2.50 over the same period.
The well’s peak month — about 305 barrels a day.
- Operating cash flow, first 7 years
- $6,598,000
- Value of the remaining life at year 7
- $1,610,000
- Less: capital repaid to investors
- − $4,500,000
- Total value generated through year 7
- $3,708,000
First three months of production
- Oil
- 23,100 bbl
- Gas
- 107,900 Mcf
- Value at your prices
- $1,209,000
The well’s first three producing months; it is being drilled and completed before that. These are its highest-rate months and the decline is steepest at the start — the third month is already about 18% below the first — so these figures do not annualise.
The repayment case assumes peak oil production of 9,275 barrels per month—about 305 barrels per day. Peak represents a well’s best month, not a sustained production rate, so the model applies the project’s full decline curve over time. Recently available production data from ten newly completed comparable wells — horizontal wells of the same lateral length, completed in the same reservoir, located approximately three to ten miles away — shows average peak production of about 14,700 barrels per month—approximately 483 barrels per day. These results provide encouraging support for the reasonableness of the project’s more conservative assumption, but they do not guarantee comparable performance from the project wells.
Disclosure
Figures are for one well at 100% working interest, before the fund’s fees and distribution waterfall — they are not an investor return. A peak month is an early indication of how much a well is likely to produce over its life, and actual production will vary from it. Results are estimates and will differ from actual results. See the offering documents for complete terms.
How investor classes work
Your position is set by when you file — not by how the rest of the raise fills. It determines when jobs are allocated to you and when your capital comes back, and it is worth understanding before you decide when to act.
First in line for job allocation and first to be repaid.
Allocated after Class A, repaid after Class A.
Completes the 25-investor Phase 1 program.
- Classes form in filing order
- Investors are grouped in tens, in the order their I-526E petitions are filed. Not by when you enquire, reserve or subscribe — by filing date.
- Jobs are allocated by class
- Each class claims its qualifying jobs ahead of later classes. An earlier investor’s ten-job requirement is met from the earliest jobs the project creates, rather than depending on the program reaching its full size.
- Repayment follows the same order
- Earlier classes are repaid before later classes, and no profits are distributed to management or the operators until every class has had its capital returned.
- The 36-month target refers to the earliest classes
- Repayment is funded from production cash flow. The first classes to file are repaid first, and the 36-month target is set against them. Later classes are repaid from the cash flow that becomes available after earlier classes have been returned, so a later investor should expect to wait longer — potentially beyond 36 months. No repayment date is guaranteed for any class.
- What this means in practice
- Waiting is not the cautious choice. Filing later places you behind investors who filed earlier, for both job allocation and repayment priority. Class priority is an ordering, not a guarantee of petition approval or of any particular repayment date.
Two oil prices, two different questions
You will see both figures in our materials. They answer different things, and the difference between them is the point.
The price assumption behind the economic analysis USCIS reviewed, and therefore behind the job-creation model. Job creation is calculated from projected spending and revenue, so the filing has to state a price.
The average price the wells would need to realize for the fund to meet its 36-month repayment target for the earliest classes. Lower than the filing assumption — the repayment case does not depend on oil holding where the job model put it.
Neither figure is a forecast, and neither is a guarantee. Oil prices move for reasons outside any operator’s control. Sustained prices below the repayment case would extend the timeline; job creation depends on actual spending and revenue, not on the modelled price being achieved.
How the eight wells get funded
Eight wells at roughly $4.5 million each costs more than 25 investors at $800,000 contribute. Here is how the difference is covered.
- The program is funded progressively
- Wells are drilled as capital becomes available, not all at once. EB-5 subscriptions fund the initial wells in the sequence.
- Production revenue is reinvested
- Wells generate revenue from their first month of production. For the first three years that revenue is reinvested into drilling subsequent wells rather than distributed — which is what allows a $20 million EB-5 raise to fund an eight-well program.
- Additional capital
- The fund may also use capital from sources other than EB-5 subscriptions. Any such arrangement, and the conditions under which drilling proceeds, are set out in the offering documents.
- If subscriptions fall short
- Because the program is phased rather than all-or-nothing, fewer subscriptions means fewer wells drilled on a longer schedule — not a project that stops. The offering documents govern what happens in that case, and you should read them on this point specifically.
Read the offering documents
The private placement memorandum, limited partnership agreement and subscription agreement set out the terms in full and control over anything on this page. They are available to verified investors on request.
Request the documents Schedule a call