King Operating Corporation (Jay Young) and G2 Partners (Cottom Graham) - Oil / Gas

[Joseph M.]

I know this is not REI, but this passive oil/gas fund was recommended by a RE syndicator/fundraiser. I wanted to share my experiences and see if any other BP members wanted to share input or notes.

KING:
I invested with Jay Young and his team based on a recommendation from Sarah Sullivan at SuGo Capital. The original oil and gas investment proforma projected the following: a $75,000 W-2 tax deduction, a 3x return on investment (approximately 350% over 3–5 years), and an 8–12% annualized return (ARR) paid monthly.

While the tax deduction did come through as expected, the actual monthly returns have been significantly lower. My last two monthly distributions were under $100, and based on 2025 year-to-date results, my returns equate to roughly a 2.8% annualized rate.

Despite these underwhelming results, the team continues to launch new funds and actively solicit additional investor capital. I would strongly caution others before investing. Notably, Sarah Sullivan has since moved on to another firm—G2 Petroleum, with Cotton Graham.

G2:
I invested with Cottom Graham and his team based on a recommendation from Sarah Sullivan at SuGo Capital. This was Sarah’s new oil and gas opportunity following the poor performance of King Operating. G2 promoted a strategy focused on drilling numerous shallow wells at a lower cost, rather than investing heavily in a few expensive deep wells. The idea was to create diversification across many wells and reduce the risk of significant losses if a single deep well failed to produce oil.

For this fund, G2 reportedly raised approximately $22 million from around 270 investors. I’m not sure what portion of those funds, if any, went to Sarah as a referral or finder’s fee.
The original proforma for this investment projected a $75,000 W-2 tax deduction, a 2.5x return on investment over 3–5 years, and a 15% annualized return (ARR) paid monthly, based on an assumed oil price of $75 per barrel. In a 2025 investor webinar, G2 stated they expected to achieve a 35% annualized return by Q3 2025 with daily production reaching 520 barrels per day.

Unfortunately, as of October 2025, the fund is averaging only about 60 barrels of oil per day—far below projections. Correspondingly, the current returns are well under the original proforma, although the G2 team maintains confidence that they can still achieve the targeted 2.5x return within 3–5 years. Personally, I have little confidence in that outcome.

Despite these disappointing results, the team continues to launch new funds and raise capital for their 2026 program. I would strongly advise potential investors to proceed with caution—and if you are investing through Sarah Sullivan or the SuGo community, it’s worth asking directly what compensation she receives for referring investors to G2.