Frequently Asked Questions


No.  Title to the production transfers directly from the producer/client to the market at the delivery point and 100% of the payment is transferred directly into the producer's bank account by the market.
No.  In order to avoid any perception of a conflict of interest during the negotiation of a marketing arrangement, Phoenix's fees are solely for the producer's account.
No.  Unless the producer wishes to amortize its marketing investment over the term of the marketing contract, all of Phoenix's fees are charged on the "front-end" of the deal.
Having someone in your organization handle marketing in their spare time vs. using a fully trained, experienced and equipped marketing professional is analgous to having someone in the pit crew be the driver of a NASCAR or F-1 race car. Sure, they could get it started and around the track, but what about the results?  Would the sponsors (shareholders) be happy that their huge investment was optimized?
Phoenix also adds value through the economies of scale that a junior producer on its own can never replicate.  With over 40 clients producing in total over 40,000 boe/day, Phoenix is viewed as a significant sized source of crude oil, natural gas and NGL's by marketing companies and direct consumers.
No.  Most of Phoenix's client Consulting Services Agreements ("CSA") have a 30-90 day early termination clause, which can be triggered by the new owner on or after the closing date of a corporate acquisition.
Phoenix can not sign any marketing contracts on behalf of a producer client, without its express written consent.  In most cases, the client's representative signs the contracts after Phoenix has reviewed the terms and initialled its verification.  Phoenix's limits of authority are established in writing at the start of the relationship through a marketing agency authorization letter that is signed by the client and sent to all of its existing and potential counterparties.