Why Directly Invest in Oil and Gas?

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Distictive 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.   

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.

Direct Communication with Operators

You will actually know and have the ability to directly communicate with the operator.

Diversification

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.

Passive Income

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

Frequently Asked Questions

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?

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.

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.

When and How do I get Paid?

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?

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?

BOPD: Barrels of Oil Production per Day

CFG: Cubic Feet of Gas

WI: Working Interest (see above)

M (thousand) and MM (million)

NRI - Net Revenue Interest (working interest minus the royalty interest)

Disclaimer


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.