Energy 11
Energy 11, L.C. is an oil and gas limited partnership focused on the acquisition, development, and production of oil and natural gas properties in the Bakken Shale and Three Forks formations of North Dakota — one of the most prolific and economically significant tight oil plays in the United States. According to its website at energyeleven.com, the partnership was established to provide accredited investors with direct participation in the development and production of Bakken oil properties through a non-traded limited partnership structure that generates income from oil and gas production while offering investors exposure to the potential upside from continued development of a proven and prolific shale oil resource. Energy 11's Bakken properties benefit from the extensive infrastructure, established drilling techniques, and proven production characteristics that have made the Williston Basin one of the most economically attractive tight oil development regions in North America.
Energy 11's investment strategy, described at energyeleven.com, centers on acquiring working interests in Bakken Shale and Three Forks wells that are operated by experienced operators with proven track records of successfully developing horizontal wells in the Williston Basin. The partnership's properties are located in core Bakken areas where the combination of reservoir quality, established infrastructure, and operator experience provides the most predictable and economically attractive development outcomes. Energy 11's participation in multiple well projects across its Bakken property portfolio provides investors with geographic diversification within the Bakken play and reduces the well-specific risk inherent in any single horizontal well investment. The partnership's income is derived from the sale of crude oil and natural gas produced from its Bakken and Three Forks well interests.
Energy 11's non-traded limited partnership structure provides accredited investors with direct ownership of working interests in Bakken oil and gas wells, giving investors an undivided interest in the production revenues and operating economics of the partnership's property portfolio. According to energyeleven.com, this direct working interest ownership structure provides tax characteristics — including deductions for intangible drilling costs, depletion allowances, and other oil and gas-specific tax provisions — that may be advantageous for certain investors compared to alternative investment structures such as C-corporation equity or REIT shares. Energy 11's combination of Bakken Shale focus, experienced operator partnerships, working interest ownership structure, and direct production income provides accredited investors with a distinctive and operationally substantive approach to participating in the ongoing development of one of America's most prolific shale oil resources.