The Answers You Need
EB-5 Program Investment FAQ
This guide has the answers you need to make an informed decision for your families future. If you have a question that isn’t covered here, please contact us directly to help you.
Project FAQs
EB5 Oil is a rural EB-5 investment offering tied to the development and operation of 13 horizontal oil and gas wells in Lavaca County, Texas. EB-5 investors provide capital to a project-level loan that finances drilling, completion, and production operations of these wells.
The project focuses on:
- Drilling and completing 13 horizontal oil and gas wells
- Operating those wells to produce oil, natural gas, and associated liquids
- Generating revenues from the sale of hydrocarbons into existing regional markets
The wells are located in Lavaca County, Texas, within an established oil and gas producing region. Lavaca County meets the criteria for classification as a rural Targeted Employment Area (TEA) under the EB-5 Reform and Integrity Act.
Under current U.S. immigration law, a “rural” EB-5 project is located outside a metropolitan statistical area and outside a city or town with a population of 20,000 or more. Lavaca County qualifies as rural, allowing the EB-5 Oil project to seek rural set-aside EB-5 visas and priority processing for investors’ I‑526E petitions.
The project includes 13 horizontal oil and gas wells planned for drilling and production.
The project is structured so that EB-5 capital will “backfill” into the capital stack after first production of oil and gas is underway from the first well. That means:
- Investors participate in a project with production already underway, rather than a purely speculative exploration concept
- Drilling has commenced in July with initial drilling and completion are funded by non–EB-5 capital
- EB-5 funds are deployed after production is established on at least the first well ensuring economic viability
The wells are sponsored by:
- Paleo Oil Company – serving as the operating partner, responsible for technical operations, drilling, and production
- Graystreet Partners – a San Antonio, Texas–based investment firm acting as the non-operating partner and project sponsor
The EB-5 sponsor and investment manager is Bedrock Group, an experienced EB-5 investment manager and sponsor of multiple EB-5 projects. Bedrock Group is responsible for:
- Overseeing compliance with EB-5 program rules and USCIS requirements
- Structuring the EB-5 investment
- Managing investor relations and compliance reporting
The EB5 Oil project is structured to raise $49,600,000 in EB-5 capital from 62 investors.
The offering is designed for 62 EB-5 investors, each expected to contribute the standard EB-5 investment amount (plus associated administrative fees) in accordance with program rules at the time of subscription.
- Immigration objective: Create sufficient qualifying jobs to support the USCIS requirements for all EB-5 investors’ immigration petitions and permanent residency.
- Financial objective: Achieve production-based cash flow to support repayment of the EB-5 loan within the target term.
- Operational objective: Safely and efficiently drill, complete, and operate all 13 wells in a proven Texas oil and gas basin.
The project is expected to create approximately 1,407 jobs from:
- Drilling and completion activity
- Ongoing operations and maintenance of the wells
- Indirect and induced jobs calculated using accepted economic impact models (e.g., RIMS II / IMPLAN through the regional center)
This job creation figure is designed to exceed the minimum 10 jobs per investor required under the EB-5 program.
A traditional EB-5 real estate project usually depends on:
- Construction completion
- Leasing or sales absorption
- Long-term stabilization
EB5 Oil is an EB-5 energy / oil and gas project that depends instead on:
- Drilling and completion success in a known producing region
- Commodity production (oil and gas volumes)
- Revenues from the sale of hydrocarbons
This means:
Repayment is driven by production-based cash flow and structured reserve funding, not by selling or refinancing a building at a specific appraised value
Job creation is driven primarily by drilling, completion, and operations
The project contemplates three primary exit strategies for repaying the EB-5 loan:
- Sale of the wells or interests in the wells to a larger regional producer or strategic buyer
- Repayment through the restricted reserve fund funded monthly from hydrocarbon sales
- Refinance of the wells, replacing the senior EB-5 loan with other senior debt or capital sources
Financial, Structuring, and Safety FAQs
EB-5 capital is structured as senior position financing in the project’s capital stack. That means:
- EB-5 investors’ capital is intended to be repaid before any returns to subordinated lenders or equity investors
- The EB-5 loan is intended to sit above subordinated mezzanine debt and equity
The remaining required project capital is expected to be provided through:
- A subordinated mezzanine loan
- Equity capital, both controlled by Graystreet Partners
These subordinated capital layers are designed to absorb losses before the senior EB-5 loan, enhancing the seniority of EB-5 investors in the repayment waterfall.
“Backfill” means EB-5 capital is not the first money deployed. Instead:
- This can potentially reduce early-stage execution risk for EB-5 investors, because production has already commenced by the time EB-5 funds are deployed
- The project starts drilling and completion activities using sponsor capital and other non–EB-5 financing
- Once the first well is drilled and producing, EB-5 capital is then deployed to repay or replace certain prior capital and support continued drilling and operations
The EB-5 loan is structured with:
- An expected total term of approximately 42 months, allowing for a wind-down period, final funding of the restricted reserve account, and execution of exit strategies
- A base term of 36 months from final closing
Repayment is intended to come from:
- Sale of wells – The wells or working interests may be sold to a large regional or national oil and gas producer, with sale proceeds used to repay EB-5 capital
- Restricted reserve account – A dedicated reserve account funded monthly from hydrocarbon sales by Graystreet Partnersand required to be fully capitalized by month 42 of the loan
- Refinancing – The wells may be refinanced with a new senior loan or other capital source that pays off the EB-5 loan
The restricted reserve account is a dedicated account that must be funded monthly from the sale of hydrocarbons. Structured to accumulate sufficient funds over the loan term to fully repay the EB-5 loan (subject to production performance and commodity prices), and restricted for defined purposes, typically tied to EB-5 loan repayment and investor protection. This structure is designed to create a production-based repayment mechanism that does not rely solely on a single large sale or refinancing event at the end of the term.
The intent is for the EB-5 loan to be secured by project assets (e.g., interests in the wells and related collateral), with specific security terms set forth in the loan agreement and offering documents. Investors should review the private placement memorandum (PPM), loan agreement, and security documents with independent legal counsel.
Key risk-mitigation features may include:
- Senior position of EB-5 capital in the capital stack
- Use of proven drilling and completion techniques in a known producing region
- Backfill deployment, so EB-5 capital comes in after first production is demonstrated and economically viable
- Monthly reserve funding to support repayment
- Conservative job creation assumptions exceeding the 10-jobs-per-investor requirement
- Oversight by experienced EB-5 sponsor and project sponsors/operators
However, all EB-5 investments involve risk, and oil and gas projects carry commodity, operational, and geological risks. There is no guarantee of repayment or successful immigration outcomes.
Typically, funds are initially placed in an escrow or subscription account until closing conditions are met. After meeting conditions (e.g., minimum raise, USCIS filing milestones), EB-5 funds are released and deployed into the project according to the loan agreement. For this project, deployment is structured to occur after first well production, consistent with the backfill design. Exact timing is governed by the subscription, escrow, and loan agreements. Our goal is to raise an initial 6 to 8 EB-5 investors and prepare for first advance of capital to the project so investors begin their 24-month at risk period in a timely manner.
Escrow structures vary by project and by investor market. Some EB-5 offerings:
- Release funds upon I‑526E filing
- Release upon I‑956F approval for the project
- Or release based on other trigger events
EB5 Oil’s specific escrow and release conditions will be detailed in the offering documents. Investors should review those terms carefully with immigration and securities counsel. Our terms closely align with industry best practices.
No. Under U.S. securities and immigration law:
- Principal and return cannot be guaranteed in an EB-5 investment
- Capital must be “at risk” for the purpose of generating a return
- Any guarantee of immigration success or repayment would conflict with EB-5 program rules
The project can, however, employ risk-mitigation structures, such as seniority, security interests, and reserves, but those are not guarantees.
Lower commodity prices can affect the project cash flows and profitability, the timing or level of funding to the restricted reserve account, and the feasibility of refinancing or sale exit strategies. The project’s economics are typically modeled using conservative price assumptions and sensitivity analyses, but commodity price risk remains a key factor in any oil and gas project. Our wells have an extremely low breakeven price of $20 providing significant margin of error for success.
If production volumes are below projections due to geological or operational issues, the project may generate lower revenues than expected and require longer time to fund the restricted reserve account. In this low probability scenario, we would lower the total EB-5 offering size to a level that can adequately be deployed and still achieve repayment at maturity.
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Immigration FAQs (EB‑5 Visa, Rural Set-Aside, and Process)
The EB5 Oil project is structured to support investors seeking A U.S. green card (permanent residency) through the EB-5 Immigrant Investor Program. The EB-5 Program provides immigration benefits for the principal investor, spouse, and qualifying unmarried children under 21.
Under the EB-5 Reform and Integrity Act of 2022, rural EB-5 projects benefit from 20% of annual EB-5 visas reserved (set aside) for rural projects, priority processing of I‑526E petitions for rural investors (where implemented by USCIS) and potentially shorter EB‑5 visa waiting times for investors from high-demand countries. Because EB-5 Oil is in a rural TEA, qualifying investors may access these rural EB‑5 set-aside visas.
Under current law, the standard EB‑5 minimum investment is $1,050,000 for non-TEA projects and $800,000 for projects located in a Targeted Employment Area (TEA) such as rural areas and certain high-unemployment zones. EB-5 Oil is designed as a rural TEA project, so the minimum investment amount is $800,000, subject to any future regulatory changes at the time of investment.
Yes. USCIS has approved our I-956F petition that our business plan, offering documents, and job creation estimates all meet USCIS requirements for the EB-5 Visa on paper. Making a qualified investment in this project will put you in line for a U.S. green card. Then you, your spouse, and qualifying children may obtain conditional permanent residency, followed later by unconditional (permanent) green cards after I‑829 approval.
The I‑526E is the immigrant petition for a regional center EB‑5 investor. It demonstrates the source and path of your investment funds, that you have invested (or are actively in the process of investing) in a new commercial enterprise (NCE), and lastly that your investment is in a qualifying project expected to create the required jobs. EB-5 Oil is designed as a regional center–sponsored EB‑5 offering, so investors will file Form I‑526E.
Form I‑956F is the Application for Approval of an Investment in a Commercial Enterprise by a regional center. It provides USCIS with detailed information about: 1) the project’s business plan, 2) the economic analysis and job creation methodology, and 3) offering structure and capital stack.
A filed or approved I‑956F is important for regional center projects. Investors should ask if the project’s I‑956F been filed with USCIS and also has the I-956F petition been approved by USCIS. These milestones can affect processing expectations and perceived project risk. In both instances, EB-5 Oil has filed the I-956F petition and received approval of the same on April 20, 2026.
Job creation is calculated by an independent economic impact report (e.g., using RIMS II or IMPLAN). The economic impact report is done by applying expenditure-based models to project construction and operational spending that provides an output of direct, indirect, and induced jobs consistent with USCIS policies. Our 13 horizontal wells are projected to create about 1,407 jobs, significantly above the 620 jobs required for 62 investors, providing a safe job creation cushion.
First jobs are expected to be created as soon as the first well begins drilling and will continue on throughout the 24 month drilling phase of the project. Operational jobs from revenues of the business will continue on indefinitely throughout the economic lifecycle of the wells based upon production and sale of hydrocarbons on a monthly and annual basis. All jobs necessary for EB-5 investor green card requirements will be in place within the 24-month period investors must keep their capital in at risk status.
USCIS requires that EB‑5 capital remain “at risk” throughout the sustainment period:
For investors under the post-2022 law, guidance is still evolving, but generally your funds must remain invested and at risk up through filing of the I‑829 petition for removal of conditions. The project’s 36 month loan term is structured with this in mind, but investors should consult their immigration attorney for individualized guidance.
If the project cannot repay the EB‑5 loan on schedule due to lower production or revenues, market conditions, or delays in exit events, then the loan term may need to be extended, subject to loan documents and negotiations, or additional time may be required to complete repayment or restructure capital. Your immigration counsel may assess potential impacts on your EB‑5 sustainment period and I‑829 timing. In the case of the project, we have 3 strategies to rely upon for repayment, and because our EB-5 Loan is senior to all other capital, we have options available to us to help ensure a timely exit.
Yes. Because EB-5 Oil is a rural EB‑5 project, it is designed to qualify for the rural visa set-aside category, which reserves a portion of annual EB‑5 visas for rural investments and may receive priority processing.
The project is structured in compliance with the EB-5 Reform and Integrity Act of 2022. Industry experts have recommended EB-5 investors try to file their I-526E petitions before the September 30, 2026 deadline to ensure grandfathering of their petitions from future changes to the program that could happen during the 2026-2027 U.S. government fiscal year when the EB-5 Program is up for renewal.
Sponsors and Owners FAQs
Graystreet Partners is a San Antonio–based investment firm that acts as a Registered Investment Advisor (RIA) with diversified investments in financing and ownership of commercial real estate and oil and gas well exploration. In the EB-5 Oil project, Graystreet Partners is the non-operating partner and sponsor that provides equity capital, arranges internal mezzanine financing, and oversees project-level financial structuring and strategy/compliance.
Paleo Oil Company is the operating partner for the wells. As operator, Paleo is responsible for geological and engineering analysis, drilling and completion operations, day-to-day field management and production optimization, and regulatory compliance and safety in operations.
Bedrock Group is the EB-5 sponsor and investment manager. Bedrock’s responsibilities include but not limited to structuring the EB‑5 investment and NCE (new commercial enterprise), coordinating project due diligence and compliance with the EB‑5 program, managing investor onboarding, reporting, and stakeholder communication, and monitoring the project’s performance from the EB‑5 investors’ perspective. Bedrock has a significant track record in the EB-5 industry with 15+ years managing multiple funds and consulting third party clients raising EB-5 capital. In total Bedrock has advised and consulted clients in raising over $750 million of EB-5 capital and also internally raised close to $100 million for Bedrock affiliated project. Currently Bedrock manages a portfolio of approximately $50 million deployed across commercial real estate assets.
Paleo Oil Company and Graystreet Partners have oil and gas investment and operational experience in Texas and other energy markets. The team’s background includes technical expertise in horizontal drilling and completion, involvement in prior oil and gas development projects, and relationships with service providers, midstream operators, and off-takers. Please review the management team biographies on the Management Team portion of our website.
Yes, Graystreet Partners is providing equity capital and arranging subordinated mezzanine financing from internal institutional investors in addition to the EB‑5 senior loan. This “sponsor skin in the game” helps align the sponsor’s interests with EB‑5 investors, as sponsor capital typically takes a subordinated risk position in the capital stack. The total capital coming from internal channels at Graystreet Partners totals 69.6% of capital from sponsor and 30.43% from EB-5 capital in senior position.
Science and Engineering FAQs
A horizontal well Is drilled vertically to a certain depth, then gradually turned to drill horizontally through the target rock formation. The horizontal well exposes a longer section of the reservoir, which can improve contact with hydrocarbons and increase production significantly compared to vertical wells. Is often combined with multi-stage hydraulic fracturing (fracking) to stimulate flow from tight rock formations. Horizontal drilling is a standard technology in modern oil and gas development, particularly in shale and tight reservoirs.
The wells are located in Lavaca County, Texas, within a proven producing basin with established regional geology. Detailed geological maps and specific formation names (e.g., Eagle Ford, Austin Chalk, or other local targets) are provided in the technical and economic reports available to investors.
Production estimates are generated using geological and petrophysical analysis, significant data from nearby analog wells or offset wells, decline curve analysis (DCA) and reservoir modeling as well as engineering projections of initial production (IP) rates and decline profiles. While production forecasts are based on industry-standard methods, actual results may differ due to geological variability and operational factors. It’s never a question of if oil and gas is present, but how much can be extracted. By relying upon all the above mentioned data, the risk of an uneconomic well decreases significantly.
The wells are expected to produce crude oil, natural gas, and possibly natural gas liquids (NGLs) such as propane and butane. The exact hydrocarbon mix (oil vs. gas) influences pricing, revenues, and marketing strategy.
Typically oil is transported via pipeline or truck to regional markets or refineries. Natural gas is delivered into gas gathering systems and pipelines and production is sold under contracts or marketing arrangements with purchasers at indexed or negotiated prices. Details of marketing agreements and off-take arrangements are addressed in the project’s technical documentation. The project site for the 13 wells is adjacent to an enterprise pipeline for easy transport of gas production.
Operational risks include:
- Drilling complications (e.g., stuck pipe, lost circulation)
- Completion and stimulation challenges
- Mechanical failures of surface or downhole equipment
- Weather-related delays and access issues
- Regulatory or permitting delays
These are managed by working with experienced drilling and completion contractors, using proven designs and best practices, and building contingency and risk allowances into the project schedule and budget.
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Oil and Gas Industry FAQs
Some investors choose EB‑5 energy projects because oil and gas projects can generate production-based cash flow once wells are online (within 3 months of drilling compared to real estate which can take 24-36 months before producing first profits from cashflow). Oil and gas job creation may be more directly linked to drilling and production of hydrocarbons linked to worldwide demand than to speculative property cashflows dependent upon a project’s local economy. Energy assets can also have intrinsic value based on reserves and production, rather than solely on real estate market cycles that can lead to loss of cashflow and capital. However, oil and gas projects carry commodity price risk and geological risk, which differ from real estate risk. In the case of Bedrock’s project, our extremely low breakeven price of $20 per barrel provides a significant margin for error and still be capable of repaying all capital in the project.
Project revenues depend on the volume of oil and gas produced and the prices of oil and gas at the time of sale. If prices are high, revenues and reserve funding may exceed projections. If prices are low, then cash flow may be reduced, time needed to fully fund the restricted reserve account may increase, and exit options like refinancing or sale may become more challenging. In this case again, by being first position capital, and having a low breakeven price per barrel of $20, allows a safety margin for error and still be capable of repaying all capital in the project.
Risk profiles differ:
- Oil and gas: More exposure to commodity price volatility, geological risk, and operational risk; potential for significant cash flow if production and prices are strong
- Real estate: More exposure to market cycles, interest rates, and lease-up risk; may have more tangible collateral (land, buildings)
Each investor should evaluate personal risk tolerance, diversification goals, and immigration priorities with their advisors. Through proper structuring, project location, and reliance on geology science, investors can minimize risks for loss of capital and loss of the EB-5 green card.
Oil and gas development in Texas is regulated by agencies such as The Railroad Commission of Texas (RRC) and other federal and state environmental agencies
The operator must comply with drilling permits and spacing rules, well construction standards to protect groundwater, waste disposal and emissions regulations, and environmental reporting and remediation requirements. Noncompliance can lead to fines, operational delays, or forced shutdowns.
Most horizontal wells in tight formations are completed using hydraulic fracturing. This involves pumping water, sand, and additives into the well at high pressure to create small fractures in the rock to allow hydrocarbons to flow to the wellbore. The process is heavily regulated at the state level, including casing and cementing standards, disclosure of certain chemicals, and monitoring of operations.
Many modern energy projects address ESG by implementing best practices in environmental protection and safety, supporting local employment and economic development in rural communities, and maintaining transparent governance processes and reporting for investors. EB-5 Oil integrates ESG considerations where feasible, while focusing on the core objectives of job creation and immigration outcomes.
“What If” / Miscellaneous FAQs (Immigration, Energy, EB‑5)
Under the EB‑5 Reform and Integrity Act of 2022, there are “grandfathering” provisions that continue to process properly filed EB‑5 petitions even if the EB‑5 program lapses again and provide certain protections for investors who file under the current law.
However, future regulatory or policy changes may still affect processing times, adjudication standards, or interpretations. Investors should stay in touch with their immigration attorneys for the latest guidance.
Withdrawing from the Partnership will be difficult after your I-526E petition is filed with USCIS and after your capital is deployed in the Project. Right now the only way to withdraw after capital is advanced to the project through our EB-5 Loan is if your I-526E petition is denied. Investors should review complete denial language in the project’s offering documents and consult their independent counsel for questions before investing.
USCIS requires detailed proof that your investment capital comes from lawful sources, such as salary, business profits, asset sales, gifts, or inheritance. Every source of funds must have a clear and traceable path from origin to the EB‑5 investment. If you cannot document your source and path of funds adequately, your I‑526E petition may be denied. Work with an experienced EB‑5 immigration attorney to address source-of-funds issues before subscribing. Bedrock maintains relationships with numerous well-known attorneys with extensive experience in the source of funds process to recommend to investors to minimize risks of denials due to documentation issues.
You may still invest in EB‑5 and pursue a parallel path to permanent residency. Many investors maintain their current nonimmigrant status while I‑526E is pending and later adjust status in the U.S. or process an immigrant visa at a U.S. consulate abroad. Your immigration attorney can help design a strategy, including timing for adjustment or consular processing.
The EB‑5 Child Status Protection Act (CSPA) rules are complex. Key points:
- A child’s age is generally locked at the time of I‑526E filing, subject to certain criteria
- Processing delays can affect age-out risk
- Rural set-aside projects with potential priority processing may be advantageous for families with older children like Bedrock’s rural oil and gas project
Discuss child age-out scenarios with your immigration attorney before investing.
Many sponsors welcome prospective or current investors to visit the project site by appointment, meet with sponsor representatives, and review selected project documents on-site. We have a live camera on-site for our first well that will move along as each well is completed for investors to see progress on site. Logistics, safety, and confidentiality considerations apply. Contact the investor relations team to plan any visit.
You should compare:
- Rural vs. urban vs. high-unemployment TEA projects
- Energy/oil and gas vs. traditional real estate vs. other sectors
- Capital structure (senior vs. mezzanine vs. equity)
- Job creation cushion, project stage, and exit strategy
- Sponsor track record and transparency
A comparative analysis with your financial advisor and immigration attorney can help determine whether EB5 Oil fits your objectives and risk tolerance.
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