OUR APPROACH

SDM was founded with one main purpose in mind: to level the playing field for serious oil and gas investors.  We believe that investing in the energy sector can be very rewarding if you do your homework and trust, but verify. Since the inception of our previous energy venture, we have followed two major rules: follow the money and follow the trend.  In the early days, in what seems like a lifetime ago, we followed the money all the way from the Gulf Coast Basin to the Bakken and Niobrara shales, buying royalty and mineral interests under some of the best-capitalized companies in the exploration business. 

The business has changed dramatically in the last decades. Technological discoveries have made the possibility of a dry hole in lateral plays a slim one. We buy minerals under some of the best companies in the country, those who have made long-term commitments to the plays they are developing; companies with substantial risk capital and the best people that money can secure.  As trend watchers we have seen lots of early plays get developed and put into production.  We are seeing some phoenixes rising, such as the Cherokee/Red Fork play that companies like Mewbourne, Upland, and Toklan are developing in the state of Oklahoma.

The demand for oil and gas is continuously ramping up, which should translate into higher pricing scenarios. Additionally, inflation is expected to significantly increase down the line as a direct result of current Fed policies.  We have added another layer of investment to our modus operandi, and that is snatching up arbitrage opportunities in undervalued and underinvested select working interests. We strive to change that perspective and give investors a real chance to be as close to the ground floor as possible.  We operate our own working interests, we purchase quality non-operated working interests under some of the best producing companies in the country, and we enjoy playing the mineral game as new plays develop and we strike early in order to capitalize.   The business is a lot more complex than that, and a lot more interesting.  Investors owe it to themselves to play the game like insiders do.

Juan P. Espinosa
SDM Energy