Out of Patience
I am on the verge of recommending to my clients that they not approve the latest offering from a major oil and gas sponsor. The program is a high risk high return offering. Previous programs have experienced the high risk through multiple dry holes, but they have yet to receive the high returns. I like risk when it is in the right context, but the sponsor's programs have had more risk than return, and even in a business environment where there is substantial risk, there has to be some programs that have sizable returns to match the risk level. Unfortunately, the risk has overwhelmed these offerings (and I am beginning to believe fees are overwhelming the programs, too). I have a few questions left to get answered, but I'm afraid I already know the answers. There are going to be some unhappy people as the sponsor takes rejection personally.