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.
Compared to real estate and most blue-chip stocks, direct oil and gas investment can and typically pay out faster and have better short term ROI. We sponsor programs that project to pay out no less than 8% A MONTH once fully operational with ROIs from 3 to 7x in as little as 5 years.
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.
You will actually know and have the ability to directly communicate with the operator.
It's helps add diversity and protection to your portfolio if you own stocks and real assets as oil and gas prices are seen to be steady for the next few years. Most of our clients own interests in multiple wells in different geographical areas.
On producing assets, you will receive up to monthly checks in your mailbox with statements.
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.
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 both parties.
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
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.
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.
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.
BOPD: Barrels of Oil Production per Day
CFG: Cubic Feet of Gas
M (thousand) and MM (million)
NRI - Net Revenue Interest (working interest
minus the royalty interest percentage)
AFE -Authority for Expenditure (budget)
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
These are not an offer to buy or sell securities. We are not a United States Securities Dealer or Broker or United States Investment Adviser. Do your own due diligence and consult with a licensed professional before making any investment decisions.