3.1.  Oil & Gas Programs

Oil and gas programs are DPPs that are involved in the exploration, development, and/or production of oil and gas reserves. Although an oil and gas program is formed most often by an individual, an oil and gas DPP may also be created by an existing company that wants to mitigate the very high risks of that part of its business.

In a typical oil and gas program, an oil company first creates a general partnership with other major investors, who agree to accept an equal share of the program’s costs and potential benefits. To raise capital and shed risk