When the cost of drilling, producing and operating have been recouped from the sale of products on a well.





Paragon Energy, Inc. has created a Limited Partnership, Paragon Energy Two, LP and Paragon Energy Three, LP, and will invest in the oil and gas industry referred to as the upstream end of the oil and gas business.

The main focus of the Partnership's investments will be (1) production acquisitions with additional potential development and (2) high quality drilling projects targeting proven productive reservoirs.

You as an investor will be a Limited Partner of the Partnership and along with the others will own a total of a 99% interest in the Partnership, with the remaining 1% interest held by Paragon Energy GP, LLC, the General Partner.

All investment prospects will meet a strict risk analysis developed by the General Partner. Risk factors that will be analyzed will include, but not be limited to, the geologic, engineering, and revenue stream.

Other criteria will be applied to all investments, some of which will be the timing of investment capital, overall project cost, standard oil and gas business economic parameters, use of 2-D or 3-D Seismic data when applicable and an attempt to achieve a return on your investment in the shortest period of time possible.