Breitling Energy Corp. (OTCBB: BECC) has formed a new strategic relationship with Patriot Energy Inc. to expand Breitling Energy's Asset Management division.
As part of its business model, Breitling Energy's Oil and Gas Management sub-division has existing industry partners that syndicate or de-risk royalty or working interests to a network of third-party industry partners or institutional investors. This sub-division generates ongoing revenue and increases reserve value through management fees, carried interests in the properties acquired and/or prospect fees.
Under an administrative services agreement, Breitling Energy will provide administrative services and access to certain of Breitling's oil and gas prospects for acquisitions of working interests and/or royalty interests. In exchange for these services, Patriot will pay Breitling Energy $300,000 per month for administrative services, $250,000 per prospect fee, and up to a 25% carried interest in each prospect acquired by Patriot.