Reserve periodically offers Natural Gas Drilling Programs which are essentially joint ventures in which a combination of internal and external investors (individual investors as well as select industry partners) purchase ownership of fractional undivided interest in the drilling program and proportionally share in the net proceeds generated from the oil and gas sales. Reserve’s Natural Gas Drilling Programs are private placements pursuant to SEC Regulation D and are classified as direct participation programs (DPPs) (which enables the investor to participate at near wholesale prices and realize any associated tax benefits). In the programs, Reserve, its Principals and/or its affiliates are the largest single investor of each program and act as the operator/general drilling contractor and are responsible for drilling, completing, and operating the wells. Reserve’s primary compensation is directly linked to the performance and results of the Natural Gas Drilling Programs. In other words, the better the well quality, the better Reserve’s compensation and vice versa.

Since 2001, Reserve has offered and closed 75 private placement, drilling programs while internally contributing over 35% of the total required capital.