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    • Opportunities
    • News and Opinion
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    • The Deep End
    • Contact Us
Knik Energy
  • Home
  • Opportunities
  • News and Opinion
  • Investor Center
  • The Deep End
  • Contact Us

Why Directly Invest in Oil and Gas?

Distinctive Investment Vehicle

You are investing in specific opportunities created by small oil and gas operators in the US versus  buying stock in large cap oil companies with relatively large administrative overheads.   

Aggressive (and typical) ROI

Direct oil and gas investment can and typically pay out faster and have better short term ROI than real estate and public stocks in steady market conditions.  We market programs that project to pay out no more than 18 months once fully operational with ROIs from 3 to 7x in as little as 5 years.

Possible Tax Benefits to Investors

You may have the ability to write off much of the intangible drilling costs on new drilling ventures in the first year and tangible drilling costs over 7 years, regardless if the well is producing or found to be "dry".  Click on button below for more information.

Tax Aspects

Direct Communication with Operators

You will have the ability to directly communicate with the operator or even set up site visits!

Diversification

It can add diversity and protection to your financial plan from market dynamics and inflation.   Most of our clients own interests in multiple wells in different geographical areas.

Passive Income

On producing assets, you will receive up to monthly checks with statements.  

Frequently Asked Questions

I'm new to this...where should I start?

I'm new to this...where should I start?

I'm new to this...where should I start?

We suggest you call us first so that we may understand your investment criteria and steer you in the right direction.  There can be a lot to take in and we want to make sure you comfortable in basic knowledge and realistic expectations.

Do I have to be an Accredited Investor?

I'm new to this...where should I start?

I'm new to this...where should I start?

No necessarily.  However, we have every new investor fill out and return an investor questionnaire, regardless if the operator requires one or not.  We want to make sure you are "qualified" to conduct any specific working interest purchase as it helps protect all parties.

What Are the Risks?

I'm new to this...where should I start?

What is Working Interest (WI)?

Every deal can have a unique set of risk, but the 2 largest ones are:


A drilled or re-entered well is simply not economical to produce in any formation after testing


A drilled or re-entered well fails during completion efforts.


The best best is to call us to discuss the risks to any specific program or lease purchase you are considering listed here

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What is Working Interest (WI)?

How do I know what's going on with my investment?

What is Working Interest (WI)?

Working interest is a percentage of any program that includes operational expenses, and acts much like net profit.  If you heard of Royalty interest, that means your "share" is like gross profit.

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When and How do I get Paid?

How do I know what's going on with my investment?

How do I know what's going on with my investment?

Once your investment is producing net profit, you will be paid within 25-45 days of production pickup.  For instance: if your wells produced and picked up in January, you would receive a check in late February/early March.  Most checks are mailed but there are direct deposit options.  You will be either paid by the operator or the oil and gas contractor.

How do I know what's going on with my investment?

How do I know what's going on with my investment?

How do I know what's going on with my investment?

We believe communication is key, whether it's good, bad, or indifferent.  We conduct relationships with entities who understand this.  Most communication will come directly from the operator but sometimes through us as operators are frequently in the field and are on tight schedules.

What are these Common Acronyms?

What are these Common Acronyms?

What are these Common Acronyms?

BOPD: Barrels of Oil Production per Day


CFG: Cubic Feet of Gas


WI: Working Interest


M (thousand) and MM (million)


NRI - Net Revenue Interest (working interest 

minus the royalty interest percentage)


AFE -Authority for Expenditure (budget)


DTC - Drill, Test, and Completion

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Want to Step Up your Knowledge?

If you would like to know more about anything mentioned above or simply cruise our archive of opinions, helpful observations, and yearly predictions, click below for the deeper dive

Let's go a little deeper

Disclaimer


  This is not an offer to buy or sell securities. Oil  and Gas participation carries very high risks. The information provided about projects and opportunities are based on the best available information, but has not be verified by Knik Energy Inc. and is subject to change at any time. Knik Energy does not make any warranties about the information provided herein and each respective party should do their own due diligence and verification.

Get in Touch with Us

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Call 512-701-1232 for additional information