Black Diamond Energy Group LLC Where 150 Years of Experience Meets Opportunity
With over 150 years of combined expertise in oil and gas operations, our investment opportunity offers a unique blend of proven experience, cutting-edge technology, and strategic risk management to maximize your returns. Our targeted payback ratio of 3:1, combined with significant tax advantages—including deductions of up to 90% of your initial investment in 2025—provides investors with both immediate and long-term value. By diversifying across multiple projects and maintaining direct control over costs and production, we aim to deliver consistent cash distributions while minimizing risk, making this an exceptional opportunity to invest in a lucrative and reliable energy sector.
Energy Investment Fund – 2025-1, LP (“Fund”)
Summary
| Offering Size |
Min: $625,000 Max: $20,000,000 |
|---|---|
| Unit Size | $50,000 |
| Investor Units |
General Partner, Limited Partner, Accredited Investors Only |
| Closing Date |
April 30, 2026 Subject to extension to no later than July 31, 2026 |
| Program Size | Up to 5 Project Investments |
Investment Objectives
2025 Ordinary Income Tax Deduction
General Partner Investors may receive a tax deduction in 2025 of 75%-90% of the initial investment. The deduction results from intangible drilling costs and tangible equipment/completion costs, offsetting taxable income in the year of investment. Final deductions depend on capital raised and equipment cost allocation.
Targeted Returns and Quarterly Cash Distributions
Projects aim for a minimum 3:1 payback over their lifetime, including tax benefits. Quarterly distributions are expected to start approximately nine months post-offering. Returns depend on well performance, commodity prices, and are split 75% to investors and 25% to the General Partner.
Tax-Advantaged Income
Approximately 15% of gross income is tax-free due to depletion deductions under current tax laws.
Risk Management
Personal Liability
Insurance protections include $2 million in liability coverage for the Fund and $10 million for subcontractors. However, insurance may not fully cover all obligations.
Operator Experience
The General Partner team has 135 years of collective experience in oil well operations. A subsidiary of the General Partner will manage operations, offering better control over costs and production rates.
Fund Investment Criteria and Advantages
Investment Criteria
The Fund focuses on projects where oil is already discovered, using data like well logs and seismic analysis. It aims for a 36-month or shorter payback period for investments.
Advantages
Diversification across up to five projects rather than a single one. Through its joint venture with USR, the Fund has access to multiple investment opportunities, currently evaluating five projects.
Drilling Program Structure
Managed by Black Diamond Energy Group LLC, the Fund acquires a 75% working interest in program wells. A Turnkey Drilling Contract and Operating Agreement ensure operational efficiency.
Partnership Risk Factors
Your investment in the Fund is speculative and subject to certain risks. The following is not a complete list of all the risks related to your investment. See “Risk Factors,” in the Private Placement Memorandum.
- The drilling of oil and natural gas wells involves the risk that the well will not provide enough revenue to return the amount of your investment.
- The revenues are directly related to the ability to market the oil and gas and their price, which is volatile and cannot be predicted.
- If oil and/or gas prices decrease, then your investment return will decrease.
- If you choose to invest as an Investor General Partner, then you will have unlimited liability during the drilling of the wells for partnership obligations until you are converted to a Limited Partner. However, you will continue to have the responsibilities of a general partner for partnership liabilities and obligations incurred before the effective date of the conversion.
- Lack of liquidity or a market for the units.
- Total reliance on the Managing General Partner and its affiliates.
- You may owe taxes in excess of your cash distributions from the partnership.
- The investor’s deduction for intangible drilling costs may be limited for purposes of the alternative minimum tax.
- Distributions may be a return of capital.
An investment in the Fund is speculative and involves a high degree of risk. You should invest in the Fund only if you can afford a complete loss of your investment. Oil & gas equipment pictured in this brochure is not owned by Diamond or the Fund.
This brochure is qualified in its entirety by reference to the Private Placement Memorandum. You and your professional advisors should carefully read the Private Placement Memorandum, including the “Risk Factors,” “Conflicts of Interests”, and “Federal Income Tax Consequences” sections.
This brochure must be read in conjunction with the Private Placement Memorandum in order to fully understand all implications and risks of the offering of securities to which it relates. This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. The offering is made only by the Private Placement Memorandum.
Management Team Bios
Russell Balasco, Sr., Managing Member
- Mr. Balasco graduated from Providence College in Rhode Island in 1964. He has spent his entire business career in Domestic & International Venture Capital and Investment Banking. Notable projects include the Seven Star Hotel in China and One Rodeo Drive in Beverly Hills, co-sponsored with the Cipriani Group. He also arranged the sale of land to the Ritz Carlton Corporation in Laguna Beach, California. He has built and sold 10 townhouses in City Plaza, West Palm Beach, FL, and provided funding for Locks of Love Charity. He co-owns Dante’s Restaurant and The Last Laugh Invasion Comedy Club in Newport, Rhode Island. Mr. Balasco's vast entrepreneurial experience makes him the ideal Managing Member of Black Diamond Energy Group LLC.
Richard J. Bednar, Manager
- Mr. Bednar is a Certified Public Accountant with a Bachelor's in Accounting from Oral Roberts University and a Master’s in Taxation from the University of Tulsa. He has over 40 years of experience in international public accounting and corporate finance. Notable career moments include serving as Managing Director of American Express Tax & Business Services (Oklahoma) and managing his own firm, Price-Bednar, which was acquired by American Express. He has been involved in the oil and gas industry for over 20 years, including part ownership and management of a 7,400-acre, 400-well field in South Texas. Mr. Bednar now provides specialized tax, investment, and business consulting services through Business and Financial Consultants, LLC (BFC).
James McCabe, Consultant
- Mr. McCabe has over 40 years of experience in the petroleum industry in executive management and corporate development. He has been an independent investor and operator in oil and gas since 1975. From 1989 to 2006, he was responsible for the development of short-radius horizontal drilling technology, with several patented tools. Mr. McCabe has drilled over 100 successful producing wells and continues to be a registered operator in Texas. He is a veteran of the United States Marine Corps, having served as a helicopter pilot from 1965 to 1973.
Wes Franklin, Consultant
- Mr. Franklin began his career as an offshore production geologist for Gulf Oil in 1969. He later worked with Tenneco Oil Company, where he directed exploration programs in West Texas and New Mexico. In 1987, he became Division Manager for Fina Oil and Chemical Company, managing fields that produced hundreds of billions of cubic feet of gas. Mr. Franklin went on to lead exploration efforts across North America, including Alaska’s North Slope and the Canadian Foothills. He was responsible for significant discoveries in the Gulf of Mexico and the Canadian Alberta Basin.
Gary Green, Project Geologist
- Mr. Green is a Petroleum Engineer with 45 years of experience in production operations, drilling, EHS/Regulatory Compliance, Midstream, and Asset Management. He has successfully completed over 100 wellbores for recompletions and workovers, managed a $20MM annual capital budget, and built 40 infrastructure projects. He has consulted for over 30 oil companies, assisting with production operations, drilling development, acquisitions, and divestitures. Mr. Green has built strong relationships with regulatory agencies such as the Army Corps of Engineers and EPA.
Tommy Martinez, Vice President of Operations
- Mr. Martinez is an experienced oilfield operator with over 25 years of experience in offshore and land operations in Texas and the Gulf of Mexico. He began his career as a floor hand and later became a rig supervisor. He has extensive experience in drilling, completion, and safety training supervision. Mr. Martinez has managed field operations for several exploration and production companies and currently serves as the field manager of a 7,200-acre field with 300 producing wells.
Contact us
Our Address:
515 S. Main St., Suite 100Tulsa, OK 74103