Q: Where does FHE Pipeline & Development, LLC “FHE” find their oil and/or gas programs?

A: FHE actively seeks to generate prospects, and actively seeks opportunities where there are proven oil and gas reserves. FHE has purchased working interests in producing properties bought directly from Exxon/Mobil, BP-Amoco, Kerr-McGeee, Chevron-Texaco, Devon and Conoco-Phillips, as well as many large independent oil and gas producers. These relationships able us to screen hundreds of available programs which provide the best opportunity for diversification and success in the oil and gas industry available for our partners.

Q: How does FHE evaluate these programs?

A: Our company has, and will continue to employ, from time to time, the services of professional petroleum consultants, engineers, and geologists as required for prospect and lease acquisition, geological analysis, project engineering, completion and equipment design, reservoir engineering, and production techniques. We believe the utilization of services of consulting specialists provides us with greater opportunities to effectively perform in our business of exploration and production of oil and natural gas. However, our exploration philosophy is not to re-invent the wheel in the oil and gas industry, but rather participate with those companies that have a successful track record, use state of the art technology, prudent management, creativity and technical excellence.

Q: What type of production and reserves is FHE drilling for with these programs?

A: Our focus is to drill in proven areas where there is known and credible reserves in place and only in developmental areas where consistent activity and high completion rates. We participate in drilling programs ranging from 3,000 to 10,000 ft. in depth. Our goal is to drill wells for oil and/or gas with potential production rates ranging from 1 to 3 million cubic feet of gas and/or 50 to 200 barrels of oil per day. We look for recoverable reserve potential in the range of 2 to 40 billion cubic feet of gas and 50,000 to 2,000,000 barrels of oil per well.

Q: What is a typical rate of return when investing in oil and/or gas?

A: Too many variables affect the drilling and production of oil and/or gas, therefore no guarantee can be made for a profitable venture. However, if our due diligence in evaluating a prospect, and assuming all factors are accurate, our goal is a total return of initial investment within the first 3 to 36 months with an upside overall potential rate of return ranging from 5 to 1 or even as high as 40 to 1.

Q: How long do wells produce?

A: This can depend on many factors, such as recoverable reserves, formation size, permeability, porosity and many other variables. Wells, on average, may deplete annually 2 to 20%.