Prospective Oil Investors

At this time we (“Midwest”) do not have any current offerings that are open to subscribers or potential investors. We have closed eight transactions to date, with our last being January 2014. We expect to have our next offering available when prices come back to a $60 level. Typically, we try to structure two offerings a year. This all depends though on what prospects have come available to our oil operators and the price of oil.


We don’t keep any offering open on a year round basis. Each offering typically is open three months for subscription. Once the minimum offering amount is raised, we move forward on the offering and days before the first well is drilled we close the offering.


Even though no offering is available, please contact us with your questions or to see if this is something for you. We can keep you posted on when the next offering is available.


**All investors, whether individuals or corporations, are required to meet the “Accredited Investor” definition as defined in the Securities Act of 1933, as amended. All potential investors must attest and provide proof that they fit this definition which is defined as the following:


Under existing Rule 501, a person qualifies as an accredited investor if he or she has either:

  • 1. An individual net worth or joint net worth with a spouse that exceeds $1 million at the time of the purchase, excluding the value (and any related indebtedness) of a primary residence.
  • 2. An individual annual income that exceeded $200,000 in each of the two most recent years or a joint annual income with a spouse exceeding $300,000 for those years, and a reasonable expectation of the same income level in the current year.
  • 3. For corporations and partnerships, a minimum net worth of $5,000,000 or greater.


The determination of the reasonableness of the steps taken to verify an accredited investor is an objective assessment by an issuer. An issuer is required to consider the facts and circumstances of each purchaser and the transaction. The Securities and Exchange Commission has provided a non-exclusive list of methods that issuers may use to satisfy the verification requirement for investors.


These methods for verification of Accredited Investor status include the following:

  • 1. Review of tax documents (IRS Form W-2, 1099, 1040, Schedule K-1, etc.) for the previous two years and a written representation from the potential investor that he or she has a reasonable expectation of reaching the income level necessary to qualify in the current year.
  • 2. Review of Assets (bank statements, statements of securities holdings, etc.) for the prior three months as well as a review of the liabilities (consumer credit check from national reporting agency is required) and a written representation from the potential investor that all liabilities have been disclosed and that he or she has a reasonable expectation of reaching the income level necessary to qualify in the current year.
  • 3. Written confirmation from a permitted independent third party such as certified public accountant, licensed attorney, registered broker-dealer or SEC-registered investment advisor that the potential investor is an accredited investor and such written certification must be within three months’ prior to the purposed securities purchase.