FAQ

The top 28 most commonly asked questions

‍How do I get paid as an investor?

Our proven co-ownership profit share model provides each investor with a portion of the monthly oil and gas net revenue produced from the wells in which they have an investment. This is known as a monthly revenue disbursement or MRD which is directly in ratio to each investor's ownership which is commonly known as Working Interest. These revenue disbursements are essentially a monthly residual income stream that is directly paid to you.

What is the estimated ROI per project, and what is the investment time horizon?

Each project presents varying rates of estimated return, timelines for revenue commencement, residual income distribution, and investment time horizons. That being said, how many barrels of oil per day a well produces, and the percentage of ownership an investor purchases in a well are the main factors that dictate what the monthly ROI would be.

We look for projects with the optimum risk-to-reward ratio, which has a short drill-to-production period, and we seek returns of between 400% to 700% on capital that you have invested. Most wells can produce oil for 20-30 years, yet there are many wells from the 1950s and '60s that are still producing commercial quantities of oil and gas today. In the case of our ASE Oddfellow oilfield, there is strong geological evidence that supports our pressure maintenance strategy that can extract up to 90% of all hydrocarbons in 21 years.

I have never invested overseas before.

Over 85% of our non-US resident investors have never invested internationally before. Coming on-board with Alpha Seven Energy and investing in our projects was not only their first time investing overseas, but it was their first time investing in the oil and gas industry. There are major benefits for you when investing in the US, which you simply don’t get in Australia or other countries. For example, the US is very proactive with regards to being energy independent, because of this, there is less bureaucracy, or “red tape,” massively expediting the permitting process so projects can generate revenue dollars for investors much quicker than most other countries. Additionally, in the US, an individual can own mineral rights to all depths.

Finally, when it comes to tax-advantaged investments for wealthy or sophisticated investors, one commodity continues to stand alone above all others, oil. With the US government’s backing, domestic energy production has created a litany of tax incentives, which our investors take full advantage of.

The world is transitioning to electric vehicles, therefore won't the demand for oil decrease?

While electric vehicles will undoubtedly influence the energy sector, the timing and magnitude of their impact remain pivotal. Presently, the global vehicle count stands at 1.474 billion, with electric vehicles constituting only approximately 26 million. Projections by the International Energy Agency estimate electric cars will reach 125 million by 2030, yet this would represent merely 8.5% of the global vehicle market. Oil remains essential beyond vehicle fuel, serving in various transportation fuels, industrial products, and materials. The demand for oil-derived products, fueled by progress in developing nations and population growth, spans over 3,000 globally used items, with significant consumption in the USA, China, and India.

How long have you been in business?

Alpha Seven Energy was founded in May 2017 in the US, headquartered in Dallas, Texas. Catering to our substantial Australian investor base, we established Alpha Seven Energy Pty Ltd in March 2020, with an office in Sydney's CBD. Over the years, our commitment to operational efficiency led to the formation of FP Operations LLC, a fully licensed oil and gas operator. This integration has fortified ASE, enabling us to function as a fully integrated company, consistently evolving to enhance our services and provide increased value to investors.

‍How do low oil prices affect my investment & income?

While oil price fluctuations impact income, our projects predominantly yield more oil than gas. However, due to our lower production costs compared to larger overhead companies, we can maintain solid returns during periods of low oil prices. Most of our wells produce both oil and gas, offering improved income diversification.

What are the effects on the environment?

The US has lower emissions in oil production versus other countries such as Mexico, Iran, and Iraq. This supports the need for US investment in oil and gas to lower global emissions.

All of our projects are located within the US, with most situated within Texas and Oklahoma. Now in the grand scale of oil and gas companies, we are quite small in comparison to companies that produce tens of thousands of barrels per day, hence we do not have a big impact on the environment. In addition, most of our projects have natural gas present, which has less of an effect on the environment. This means that our carbon footprint is minimal.

With that being said we do have an environmental responsibility mandate as a company, and in May 2020 we commenced our “New Growth Program” which means for every new and current project we will plant new trees. ASE has aligned with Eden Reforestation Projects which is a non-profit organization that not only plants tens of thousands of trees, it also employs local villagers to plant and care for the trees, thus creating employment too.

Why should I invest in fossil fuels while there is a global push for the energy system to transition to clean energy?

This is an interesting topic as most people think that to support a clean energy initiative, we need to stop investing in fossil fuels. The fact is, it is the complete opposite. The decarbonisation transition requires massive amounts of investment in fossil fuels to research, innovate, and produce cleaner more efficient technologies, and methods to reduce emissions in production. Without this investment, the transition will be a lot slower, unfortunately, and will also restrict supply which will, in turn, push oil prices higher.

In saying that, we at ASE support the energy transition and are looking at ways to diversify into renewable energy sources that will provide an acceptable risk-to-reward ratio for our investor partners.

‍I've heard a lot of bad things about fracking.

Out of numerous drilled wells, only two utilized horizontal fracking, both without issues. Properly regulated hydraulic fracturing, evidenced by over 300,000 safely operated US wells, ensures minimal environmental impact. ASE operates under the jurisdiction of the Environmental Protection Agency to further ensure safe practices.

I've invested in property and the stock market, but never in oil & gas.

Over 70% of our investors have invested in property and the stock market in the past, and most still have exposure to these investment sections. Only a small percentage of investors had invested in direct oil and gas ownership in the past, yet almost all of our 300 investors joined ASE all seek diversification of their investment portfolio, receive a monthly residual income, boosted ROI potential, and multi-generational wealth creation.

How do you know oil is beneath the ground?

The level of due diligence we undertake before offering investors equity in our projects is extremely thorough and rigorous. We have a strong team of industry experts and geologists who vet each project and all of the research data. We look for multiple stacked opportunities, meaning each oil and gas formation, also known in the industry as a “pay zone,” can be targeted to increase production and of course, to improve the overall ROI.

For example, our ASE Oddfellows Oilfield in Seminole County, Oklahoma is now classified as a development project. Essentially we are mining for hydrocarbons (up to 5 hydrocarbon-rich pay zones) in a proven oilfield, with oil and gas production on and surrounding our project. Our team of experienced geologists and engineers analyzes production data and well logs to mitigate risk and select the best possible drilling locations.

‍Should investors be worried about the effect of geopolitics on the oil industry?

Oil is a physical market driven by supply and demand. We expect (at times) to see imbalances with supply and demand, which also means over supply can revert and overcorrect. One interesting observation is seeing the multi-national government interventions that are implemented to support low oil prices.

Our position is that this will create significant pricing pressure once oil demand picks-up and we try to unwind the supply cuts. It is important to note the level of reliance on the oil industry from international budgets, as well as millions of jobs. We are seeing and will continue to see major government and international support to the industry.

What effect does the exchange rate have on my investment?

For overseas investors, the exchange rate during the conversion of your local currency to USD impacts your return, mainly when converting USD profits back. Historically, the Australian dollar has been weaker than the US dollar, benefiting Australian and other non-US-based investors receiving profits in USD.

How do I verify that the project is genuine?

Most importantly, we have an open-door policy in both our Dallas and Sydney offices, and we welcome any potential investor to visit us in person. In 2025 we have experienced an increase in the number of investors, especially non-US residents coming to the US and visiting our projects in person. Investors receive increased confidence when they meet our team, our attorneys, our geologists, drillers, and petroleum engineers, and visit the leases to see the ASE operations firsthand.
‍
If investors are unable to make the trip stateside, Australian investors are more than welcome to come and meet Pete Fagan or Grant McLoughlin at our Sydney office, or another popular option for our main international investors is to book a Zoom meeting.

Additionally, we provide extensive amounts of evidence regarding not only the project history and geology but the legal agreements and permits as well. We have one of the top lawyers in Dallas, Steve Holmes create these agreements and ensure that all of the legal frameworks are correct and in place. Every project has a lease agreement and each phase has an SPE, or special purpose entity created to hold the individual asset, which in this case, is the wells you are investing in. A private placement memorandum (PPM) is provided as well as a subscription agreement.
‍
Each state has its own governing body that oversees the oil and gas industry. For example, the Texas Railroad Commission (RRC) ensures that oil and gas companies are following the correct legal process before drilling and during the ongoing management of each oil and gas well.

For example, in Oklahoma, you can go onto the OCC website, which is a Government agency, and cross-check that the operator on the project is fully licensed and in good standing. Plus every well has a unique API number, similar to a serial number, which is registered with the RCC in Texas, or OCC in Oklahoma, and all of this information is available on their website. You can request the weblinks and also book in for a screenshare to walk you through your due diligence checks.

‍I feel more comfortable investing in a publicly listed company.

We want all of our investors to be comfortable with their decision to join ASE and invest in our oil and gas projects. If you are a very conservative investor who only likes only blue-chip shares then this opportunity may not be suitable for you. However, most investors want direct ownership in the oil and gas wells because you can receive not only huge tax benefits, which you don’t get with listed companies but also a monthly income and the potential to make 450% to 800% returns.

Each of our investor partners receives a full PPM and legal agreement before investing. Once on board, you will receive your official share certificate showing your exact unit investment in the Project SPE, Special Purpose Entity.

What is the timeline from investing my capital to receiving income?

It all depends on the individual project. Each project is different in size and scale and has a different capital requirement. Therefore, the timeframe to raise, drill, and generate revenue can vary between projects. In the past, we have drilled massive horizontal wells, which can cost upwards of 12 million US dollars and take up to 6-8 months to drill, complete, and start producing hydrocarbons.

In recent times we have redirected our main focus and expertise to drilling shallow wells and developing large proven oilfields. These wells have a smaller turnaround to raise capital, drill, and produce oil. These types of projects are online and reduce the cost basis earlier with revenue for investors. For example, our Parker Fee Oilfield project, in Texas had a 8 week time horizon from investment to investors receiving their 1st monthly revenue disbursement.

What type of on-going communication do I receive as an investor?

Every investor will receive their personal username and password to access the Investor Partner Portal. Each phase and project has its own designated section where you will receive updates on your project’s progression. Our investors get to see and experience every step of the project’s development, from permitting approval and drilling, all the way to production and beyond. Every time there is an update, you receive an email notification, and every update is timestamped creating a complete project history timeline.

Additionally, after you become an investor partner, you will have open lines of communication with the entire ASE senior partner team in Australia and the USA. You can easily reach us via text, phone call, or email if you ever have any questions. You can also drop into our Dallas or Sydney office to catch up.

Do I need a US bank account, and if so, how do I set that up?

Your monthly revenue disbursements will be paid in USD directly from the oil and gas net revenue.

There are a few options for investors who do not have a US bank account. One is to establish a C-Corp and then set up a US bank account with Prosperity Bank, which is our bank of choice and we have our own accounts manager.

Most of our investors use Steve Holmes, who is part of our external legal counsel to set up their US entity. Because of our strong relationship with Prosperity Bank, they allow the accounts to be established remotely. You have full internet banking and a Visa debit card posted to you in Australia or most other countries, so you can access your account anywhere in the world 24/7.

Another option which is a popular choice with investors, is to simply set up a Wise account, either through a business or personally and this will provide a USD account and other currency accounts, so you can receive USD and then convert it back into your currency of choice.

What am I investing in, and what is the investment structure?

A Special Purpose Entity (SPE) is established as a Limited Partnership (LP) with a defined allocation of working interest (well ownership). Investors receive units in the SPE proportional to their investment. As an investor, you will benefit from monthly revenue distributions generated from net hydrocarbon sales for the life of the wells. Additionally, should you choose to exit your investment, you have the option to sell via the ASE secondary market and receive a lump sum payment.

Are you really an Australian-US-owned company?

Our roots are definitely from Australia, as Chris Hemsworth and Dylan Knight, who are the founders of the company, both lived in Australia, becoming good friends and then business partners. Chris was born and bred in Sydney then moved to Dallas in 2014, and Dylan moved to Texas in 2021. As Alpha Seven Energy evolves, we have more of an internationally owned business, with shareholders from New Zealand and the United Kingdom. Approximately 55% of our investors are based in Australia prompting the establishment of our Sydney CBD office in 2020.

As an Australian investor, am I taxed twice when investing in the USA?

There is a tax treaty between Australia and the US, which means you will not be double-taxed, in fact, most countries have some type of tax agreement with the US.
‍
Because there are very attractive tax benefits when investing in oil and gas, it is always a good idea to utilize an accounting firm that specializes in this industry. We are happy to discuss this in more detail with prospective investors as part of their due diligence.

What are the risks involved?

There are risks involved with any type of investment you make and most of our investors only invest a portion of their overall portfolio as they seek diversification. That being said, we do pride ourselves on mitigating risk as much as possible. We like to focus on projects that have consistent surrounding production and solid data showing oil and gas reserves in place. This massively increases the likelihood of a successful well and project.

In the case of our Parker Fee oilfield the 15 active oil wells provides increased diverifiecation and midgated risk due to the 15 wells being in production.

Our ASE Lois LP is a 10 well portfolio, insisting of 4 drilled wells and 6 new wells, delivering a great mix of diversification, reduced risk, while also a high probabliltiy of susbtanial upside and tax benefits.

How long is ASE intending to remain in the oil & gas industry?

Over the next decade, the oil and gas industry is expected to remain strong, especially with larger conglomerates pivoting towards renewable energy. ASE will play a pivotal role during this significant energy transition, aligned with our investors' interests. Potential exit strategies within 10 years involve pooling combined assets for sale to a major oil company or considering an IPO. While exploring other energy projects, the primary focus remains on developing oil and gas assets in the USA.

Do you provide investors with any reports once each well has been drilled?

On each phase of a project, we update our Portal we a full drilling report, which includes an Electric log, or E-log for short. This is a fundamental tool for resistivity logging which gathers important information on what is beneath the ground. For example, with our Cherokee project, we have provided comprehensive well reports from geologist Bob Pfannenstiel, containing a geological overview and a daily timeline of the complete drilling process.

Are the flow rates of oil & gas moderated and if so, who moderates it?

With the implementation of the Grease Book, our pumpers will have the App on their mobile phones in which they will provide production rates and any other developments in real-time.Every time oil is picked up from the tank batteries that store the oil we are provided with an official receipt from the purchaser, also known as the gatherer. This receipt shows the exact amount of oil picked up to a fraction of a barrel.

What can cause delays in drilling & completing a well?

Weather, particularly rain, can impact drilling preparations, although drilling in most cases will continue during rain. Lightning storms or safety concerns can pause drilling operations. Crew and contractor scheduling delays might affect the well-completion process. Delays are typically measured in days or weeks and are managed to ensure high-quality and safe drilling without compromising standards.

How are earnings paid & reported?

Monthly revenue from well ownership is paid in USD through our oil and gas accounting software, Sherware. Owner Distribution Statements are sent monthly by Peter Fagan our CFO, detailing hydrocarbon sales, prices, revenue, operating expenses, deductions, and the exact net revenue.

Integration of Fundwave into the Cherokee Investor portal in December 2023 will enable investors to easily track and manage their ASE investment portfolios through the Investor Portal.

‍How long is the term of my investment?

Your investment in oil and gas ownership remains active as long as the asset continues producing commercial quantities of hydrocarbons and covers its monthly operating expenses (OPEX). Most wells have a lifespan of 20–30 years, with some remaining profitable for over 40 years. Investors receive monthly revenue distributions as long as production continues. Additionally, should you choose to sell your investment—whether in full or in part—you will receive a lump sum payment.