Here is were connections come in to play. Dan Lloyd Jr. and SE both have a ton of industry connections. Superior has no shortage of land that they can farm in on from one of the Bigger Players. It was stated some time ago that Superior has over 1,250,000 acres that they can "pick and choose" to farm into. He is how it works as I know it. Superior finds a geological "hot spot". Devon Energy own the leases, but Superior can "farm in". Superior raises the money through private investors to purchase the land and participate in the well, just like me. When the money is raised from us, Superior tells Devon how many acres it wants. Devon then sells the leases to Superior and Superior resells to us fellow investors. This gives us the right to participate in the well or any well that Devon will be drilling in that section. If I choose not to participate in a future well, the leases go back to Superior free of charge and they will own them. So, Superior wins and wins and wins. This is the same business plan that Chesapeake Energy and Devon Energy was built on.
