There will be an assignment from Black Horse Petroleum Corp. to each participant for 5% unit or portion thereof purchased by said participant. The assignment shall be recorded in the county where the wells are located. Each participant will receive their recorded assignment directly from the recorders office.
A copy of said recorded assignment should be mailed to the oil purchaser, Bi-Petro, Inc. P.O. Box 19246-9246, Springfield, IL 62794. Bi-Petro, Inc. will then transfer that portion of interest from Black Horse Petroleum Corp. to the participant in their records and will send you a division order which reflects your ownership interest.
When oil is purchased Bi-Petro, Inc. will send you a net check on about the 18th of the month following the month of purchased, after deducting your portion of the operating expenses. The calculation for the net check shall include the deduction of expenses for all wells in which you have an interest, from the revenue generated by said wells. Bi-Petro will mail you a 1099 each year showing your revenue and expenses associated with the wells for tax purposes.
Please understand that it will take time to perform the well work-overs and the wells put into production.
The operating expenses are separate and apart and will not include any funds scheduled to perform the well work-overs unless there is a surplus of funds. In that event the surplus funds would be applied to the operating expenses.
NOTE: Past performance is not a predictor of future results. You capital involves risk of loss and individual results may vary. The examples provided may not be representative of typical results. Your capital is at risk - you can lose some or all of your money. Never risk more than you can afford to lose.