|Let An Industry Insider Help And Educate You Step By Step
During Your Discovery Of The Exciting And
Profitable World Of Oil And Gas Investing!
|Dear Oil and Gas Investor,
There are few things in life as rewarding as making great returns on your investments. We all love the feeling we get when seeing a chosen investment providing great returns on our money. You immediately know you made a wise and correct decision when excellent returns begin and continue.The trouble most of us too often discover is that it’s becoming increasingly more difficult to find, safe and stable investments where you can have confidence you will earn a decent return. Our money has to be invested someplace. The trick of knowing who to trust while finding investments offering a decent return without a lot of capital, or downside risk is the big challenge. In our current economy and market place few investments have proven to offer everything oil and gas investments can provide you. The right oil and gas investments can give you both excellent cash flow as well as substantial tax benefits for years.
|Let Me Describe To You Exactly What Is Possible When You Make Investments With Companies Having Successful And Sensible Methods And A Winning Process Of Investing To Make Profits|
For someone who has never invested in Oil and Gas before, there can be a bit of a learning curve. Initially it can be hard to know where to look, and who to listen to or most importantly…where or who to go to when trying to determine how to evaluate a new company and its oil & gas investments. Experience does count for a lot in this world. Through the school of hard knocks, and failure, I believe I have learned the pit-falls to avoid, and most importantly…can now offer you a check-list, and road-map to follow…which can help you avoid most, if not all of the major mistakes I’ve made in my career when investing in Oil & Gas…
In over two decades of working in the Oil and Gas business I rarely see the combination of the right people with the right developments all coming together at the same time. But there are currently a few good companies who do it right…that is, they consistently find oil & gas in profitable commercial quantities…while others fail to do so…There are some very good reasons why some succeed and many others fail…I would like you know what these specific reasons for succeeding are, and to help you avoid failure while you are going through your review, and due diligence process…
Great companies make money consistently within their industry. The only investors who are allowed to participate in direct participation oil & gas investments are those that qualify. Interested investors must fill-out an on line form, to both identify themselves, and provide some information about their qualifications, and suitability for oil and gas investments. The regulations are clear about what is required when offering oil & gas investments to investors, and there are legal procedures which must be followed to comply with the current laws. Investors can be more comfortable with companies who are willing to follow the rules.
We can discuss details about the information I have, and various suggestions I can make, after you provide me with your contact address, and some personal information about yourself…I see my job as helping you make the effort of finding the right investments in oil and gas much easier, and fun. I can help you identify wise, and sometimes very profitable, oil and gas investment opportunities. I have been a part of the oil & gas business now for 28 years.
When you consider investing in oil and gas wells, you should be looking for successful companies, industry partners, and operators, who can pass very strict due diligence requirements. My oil and gas experience, and background, plus the discipline learned in business, and in the military as both a pilot, and intelligence officer helps me evaluate, and find the right people to consider doing business…We want to identify who the best are…those professionals offering the best Oil and Gas opportunities in the US today…
The best industry & private oil & gas companies can make monthly returns which sometimes allow investors investing in exploratory drilling programs to receive their original capital back in less than a year after new wells are completed, and placed into production. These same companies won’t decide to develop a prospect unless at least a 3 to 1 return on investment can be expected during an oil or natural gas wells normal life which varies greatly, but most industry folks often recover up to 60% of the oil or gas reserves during the first five years from new wells.
Investors should follow a ‘risk control model’ because typically only the most careful, and diligent of the best oil and gas companies can make excellent returns, investing, and using a disciplined method of ‘spreading out risk’, and implementing the ‘diversification formula’ I’m recommending and regularly discuss…This risk control system which has been implemented by the best oil & gas companies in the business is one of the chief secrets to their success…This disciplined approach does take some of the emotion out of the equation…but enables the ‘direct participation’, and ‘working interest investment owner’ the best possible chance to make money in oil and gas private placement investment programs over the long run…and not lose their hard earned money…even if it is their risk capital…which is being invested in very carefully calculated oil and gas investment endeavors…
Since I began searching for the best oil and gas investments, I have discovered an investment method that needs to be followed every time you make an investment in oil and gas. The best companies are now utilizing this risk control method for achieving their goals and …for both their private and industry partners alike.
Many Comments I Receive Constantly!
The only approach I think really works requires any successful private company to offer its investor partners only the finest, and best industry drilling and production prospects, and ones they also take risk, and participate in themselves. Companies must use a diversification approach which can be achieved, duplicated, and works…plus they must devise the lowest possible risk investment scenario. Investors should be able to count on getting the ‘right of first refusal’ on all prospects the company offers, and participates-in, and not be ‘shut-out’, or watch the big boys ‘flank drill’ on the outer boundaries of an attractive oil & gas prospect, to discover the ‘sweet spots’, which they then reserve for themselves. This is a bad business model for the private investor, and brings-up the question, ‘what else is the company doing’ to take advantage of the private investor?
Today, I look for companies who are successful, and are developing in the best possible areas to find large recoverable reserves of sustainable oil & gas quantities in the US. The most successful oil & gas companies look for large recoverable reserves…or they don’t develop at all…believe me…only the best of the best have consistent, and successful track records at making investors, and themselves good returns. ‘Primary recovery methods’ are well known and used when drilling new wells. ‘Secondary recovery methods’ are becoming the norm when developing many fields where depletion has left behind relatively large quantities of recoverable oil & gas. However it can be cost prohibitive, or certainly more expensive to get them. The only answer is higher oil & gas prices, and better technology. Secondary recovery can sometimes extract as much as 70% to 80% of the original reserves you can recover with primary methods in some fields, and leases…but these ‘trapped reserves’ can usually only be taken-out with secondary recovery methods such as; ‘water flooding’, or specialized ‘fracing techniques’, and with the use of other newer technology available today. Our goal now is to recover as much remaining oil & gas as possible, but do so as economically as possible.
Higher oil prices have given us the incentive to go back to areas abandoned earlier, and many large independents, and some of the major oil companies are having success in previously discovered oil & gas fields. They can do this while spending far less money than drilling in exploratory operations like those conducted in the Gulf Coast for example. You can lose your entire investment in an exploratory well, or one defined as ‘more than a mile from known & established production’ with adequate ‘well control’. Well control simply means there are other producing wells, with a history of known recovery of commercial quantities of oil & gas, and therefore, off-set drilling from known wells with production, or in-fill drilling’ used to tap different zones in the same immediate area can be exploited to recover the remaining reserves in a field with a good past history of production success.
The greatest concerns almost all investors have and typically three questions all investors ask first is: How can I be assured of not losing my capital when investing? Investors then want to know how soon they will start making money. Finally, ultimately investors want to know how much they will make when investing.
Using the ‘risk control model’ I will discuss with you when we get to know one another greatly helps eliminate the statistical risk of losing your capital to nearly zero, when you spread-out your money in a carefully determined number of new oil gas prospects and wells…which are typically located within many new prospects and ‘Area’s of Mutual Interest’. When you invest with the right companies, you will normally begin receiving cash flow in about six to eight months after drilling begins but waiting a year or more is not uncommon, even with good companies…however, very deep wells can take longer to drill, complete, and place into production..
A typical productive life of most oil and gas wells can be 10-20 years…with some producing for much longer periods… Most wells return about 50% to 60% of their ultimate recoverable reserves during the first five years of their life during primary recovery. The top wells drilled and completed can achieve 6 to 1 and higher returns, but this is a small minority of wells drilled in the US where most of the best company’s wells are successfully completed as commercial producers…or it occurs in areas where secondary recovery can tap zones, and recover sizable quantities of over-looked oil & gas with modern, and new technology.
Since I have been working consistently in the oil & gas industry during the past 28 years, and with some of the best, and most competent people I know who have been in our industry for as many as 50 years or more, we’ve found there are certain traits, and qualities we share, and have in common. Being ethical, and having integrity are a couple of these traits we feel we must possess to build a successful business. People with good character, honor, and integrity don’t lie to one another, and they don’t lie to investors. Some times the news being reported isn’t good in an oil & gas development, for example a dry hole is drilled, or unusual delays are experienced. When this is the case, telling investors the truth, and where they stand with their investment is even more important. Reporting what’s really happening makes it much easier for investors to determine what a realistic expectation should be when trying to understand, and assess their oil & gas investments.
If you get called by someone who found you on an investor list, or you respond to an internet request for your personal information, and then receive a call from a promotional company, or sale organization, please, please make sure you don’t forget to look for those personality, and behavioral traits common with ‘con men’. First, con men are often in a hurry, and won’t spend enough time with you to explain what they are doing, which leads you to the second trait they display. Con men cannot explain what they are doing all that well, nor can anyone else in their ‘sales company’. Con me lack the specific competence or field experience to do this well. Con men tell so many lies and fabrications, they can’t remember them from one day to the next. Take notes, ask questions, and jot down their answers for a review days later, and particularly pay attention to projections, and details which change without a valid reason. I’ve noticed another method commonly used by con men. They flip you over to different people in their company whose titles constantly change, and they don’t have a very good sense of time. They either won’t commit to a time to call you back for answers to questions you have, or they will pass you off to another person who doesn’t know what your questions are…and they engage in this shell game I would call it. Con men will not have a track record you can check-out or define. Dates, times, people, and places will be vague, or not discussed at all by a con man. Con me will not be able to give you references of other ‘industry partners’ or with employers, who have track records they can show you, and prove. Most dangerous, is a con man will tell you what you want to hear with a lot of emotion, and far fewer facts, and figures. Worse, con men are experts at parroting back what you say to get you to like them, and accept what you like, and who you are. Finally, a con man is often uneducated, has no specific training, or education in the industry, but will down play the importance of having the credentials expected among the professionals in our industry. Check them out, call them at 0900 hours, and 1700 hours, and ask for their week-end phone numbers. They won’t be available during normal business hours. Also, be sure and ask ‘each person’ you talk to for a ‘resume’ which they often cannot produce, but if they do, check it out thoroughly. Stay away from boiler room operations. These are often located in the ‘scam capitals’ of American such as; New Port Beach, California, and Florida. These ‘calling rooms’ employ ‘front callers’ who are paid by the hour, and have so called ‘closers’ who are paid ‘illegal commissions’. Bottom-line, if a company isn’t licensed in each state where an offer is made, and their account executives, or brokers don’t have SB-22, or Series 7 Securities licenses; they are both illegally soliciting, and illegally being being paid commissions. These people won’t take the tests to be licensed brokers because the tests are hard, and the discipline and professionalism of these people is very poor. Use this technique, ask them for their individual email address. Then ask them to write a response to your questions, and finally, check-out their ability to express themselves, spell correctly, or take the time to use spell-check…and make their points in writing. Many cannot even use a computer, and they are under 45 years old. This isn’t normal in business today. Many are alcoholics, and drug users who like making a quick buck, and are often ‘charming people’ who like to bring up religions, and talk about loving investors while they bless you, and each other in the process. Don’t fall for these ‘love-fest’ hippies, or yippies & yuppies who are regularly being investigated by the S.E.C. When the money stolen from investors is a big enough number, they are often shut-down by the Securities Exchange Commission (S.E.C.), and other state regulatory bodies in ‘sting operations’ conducted throughout the US. By the way, any corporation or individual can pay for a Dun and Bradstreet rating, and can file with their corporation’s office in the state they sell. However, the Feds, and the state securities authorities act on their own authority based on complaints from investors, and when they decide to move in concert with the FBI, local Sheriff, or the Secret service, it’s usually too late to get your money back if you are an investor.
My philosophy of always keeping people informed, and aware of where they stand in an investment is a priority to me. There are many in our business who don’t do this, or don’t make it an important part of their business operations. Consistently making people money in oil & gas investments can be difficult, but the rewards are worth the effort, and investors truly appreciate it when it occurs. Email, letter, and phone updates, with clear language, and details are a good way to track an investment’s success, delay, or failure over time. Stay away from conference calls when you can’t meet the people in their place of business or in person. Be willing to call securities attorneys to check on the currency of private placement offerings used today in our industry. G.A.A.P. audits with yearly balance sheets are required for 506 Reg-D Fund Offerings, and without them, an investor will be given the first right of rescission, or the chance to get their money back if a sale, or promotional company is selling securities without a license, or is selling an expired private placement offering without a current audit. Sale companies who won’t disclose all Operators they work with in an offering is a big red flag. Operators must manage leasehold interests, deal with government agencies both Federal and local in the states they are bonded and licensed, and they make the distributions after paying mineral rights owners, state well-head or severance taxes, and finally take-out lease operating expenses before distribution any net checks to a sales company with private investors.
If you are interested in learning more about some new and exciting ideas and opportunities in Oil and Gas investments, just sign up to receive information by providing your contact information and mailing address, and call or email me with your questions, and any comments. We’ll discuss various options you may want to pursue.
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Dennis W. Stutes, Email: email@example.com
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“Oil & Gas investments are speculative in nature, and are investments involving a high degree of risk…persons considering these private investments generally must be accredited, sophisticated, and qualified to make them…In making an investment decision investors must rely on their own examination of any partnership or investment offering. This must include the merits and risks involved, including the management, and any investment offering materials, or partnership agreements, or other written documents used to represent the investment for consideration of oil & gas direct participation equity working interest investments, or FUND investments. Neither the securities and exchange commission, the NASD, nor any state securities authority have endorsed the merits of a suggested or proposed investment in oil & gas, or passed upon the accuracy or adequacy of any disclosures or comments made on this website, or in supporting email follow-up information…Any representation to the contrary is a criminal offense.”