From 1985 to 2005, Five States Energy Company, LLC formed 28 limited partnerships to acquire producing oil and gas assets. Since that time, Five States has shifted toward a focus on energy capital financing and these funds have since closed and are now legacy partnerships.

Fund History

The Limited Partnerships currently consist of the following entities:

  • Five States Consolidated I, Ltd.
  • Five States Consolidated II, Ltd.
  • Five States Consolidated III, Ltd.
    (collectively, the “Limited Partnerships”)

The Limited Partnerships were organized in the state of Texas to acquire interests in producing oil and natural gas properties. Five States Energy Company, LLC (“General Partner”) is the general partner of the Limited Partnerships. The General Partner receives 25% of net income and cash distributions. Prior to payout, the General Partner received one percent of net income and cash distributions.

In 2000, thirteen Five States limited partnerships that had reached payout contributed all their assets and liabilities to Five States Consolidated I, Ltd. in exchange for a partnership interest. The 13 partnerships then made liquidating distributions of a partnership interest in Five States Consolidated I, Ltd. to each of their partners.

In 2005, six limited partnerships that had reached payout contributed all their assets and liabilities to Five States Consolidated II, Ltd. in exchange for a partnership interest. The six limited partnerships then made liquidating distributions of a partnership interest in Five States Consolidated II, Ltd. to each of their partners.

In 2009, three limited partnerships that had reached payout contributed all their assets and liabilities to Five States Consolidated III, Ltd. in exchange for a partnership interest. The three limited partnerships then made liquidating distributions of a partnership interest in Five States Consolidated III, Ltd. to each of their partners.

Reserves and Production

Total proved reserves owned by the Limited Partnerships at the end of 2010 were approximately 5.6 million (BOE). This is a 6% increase over 2009. In 2010,the Limited Partnerships collectively invested approximately Energy Partnership Production Graph$4.25 million in capital investments. Approximately 90% of capital costs were directly attributable to drilling projects. The estimated increase in reserves attributed to these investments was 186,000 barrels at year end for an average cost of $23 per barrel. Results from some of the expenditures made later in the year are not included in the reserves due to insufficient data, so these numbers tend to understate the total results.

Total production volume for 2010 was approximately 382,000 BOE, a 1% increase from 2009. The increase in reserves and production are due to water flood activity, increased drilling and acquisition of new properties which more than offset normal depletion. Approximately 88% of year-end reserves on a BOE basis are comprised of crude oil and the other 12% is natural gas. The significant decline in reserves between 2005 and 2006 was the direct result of the sale of the majority of our natural gas producing properties.