Bottom-line, and answer to the tag line question above is simple but easier stated than accomplished. Here’s why & how. Find very experienced operators working with major ‘industry partners/who are consistently successful in the oil fields and areas where they concentrate; and most importantly stay while they continue to drill successful wells. The economics at $40 oil still work for both vertical, and horizontal wells when costs are carefully controlled. An important point to remember though is when prices are high the costs to drill, complete, and service wells goes up accordingly. However, if you can write-off 85% of your investment in the first year on your ordinary income, and write-off about two times on your money in a few years, why not?
There are still a few key areas in the onshore US where I think big production and long term oil & gas production is still the norm, and where drilling/completion costs are reasonable at today’s oil prices: I like the Bakken & Three Forks Shales in North Dakota and Montana where horizontal drilling and fracking is the best way to produce the most oil quickly with the least risk. Dry holes are rare. The Jackson Shale, in Texas shows promise as the reserves are big in this ‘over pressured ‘zone. The Permian Basin can be expensive but productive, and drilling locations can be a bit elusive to find. Actually, with zones like the Jackson Shale you can have too much down hole pressure requiring very heavy mud programs to keep the pressure under control, and not lose the well. You can have problems with your casing, down hole pumps, packers, and sticking or losing tubing. The great part is these high pressured wells don’t require above ground pumps and are therefore ‘free-flowing’.
Cash flowing wells are fun to own, and the tax write-offs minimize or frankly drastically reduce or completely eliminate your risk. Any oil & gas accountant or tax attorney can verify the value of the tax write-offs in oil drilling programs. Call me at 805 701 7761 for more information, or email at: email@example.com and leave a message. Dennis
You can beat the returns the big boys make, and get the tax write-offs the public companies take when investing in oil & gas in three primary ways!
1) Invest where the ‘same acreage’, ‘same leases, and wells’ the big Operators, and large Independents put their money, and own a majority of the working interest in the oil leases where they drill, and produce oil & gas.
2) Consult with the appropriate agencies that track and maintain records for their state’s production, drilling, and developments activities, and note the best Operators and best results of these companies. This would be North Dakota Industrial Commission (NDIC) for the prolific and well established Bakken and Three Forks Shale fields in North Dakota.
3) Make sure you can verify the paperwork, meaning; the ownership records, direct assignments, and the recorded instruments where your leases, and wells are located by county for your oil & gas investments.
Call or email me for more information…accredited investors only!
Investors interested in making money in the oil & gas investing sector will not be able to rely on generalized opportunities questioned by the federal or state securities attorneys working for the government simply because they have an agenda of their own. Yes, there are bad deals, or not so good advice on the Internet as we all know; but there are experienced oil & gas professionals, Operators, and business owners who’ve figured-out how to make money in the industry with direct ownership of leases, production, and wells operated by reputable companies, both big and small.
On balance, I would suggest investing in oil wells, oil leases, and production with good, and consistent upside that are owned or majority owned by companies or large independents who trade on an American exchange such as; NYSE, Nasdaq, or OTC Bulletin Board. Your safest bet is working with reporting public companies that file regular Q-10’s, and S-1’s to form and maintain their companies. This method of investing will give you recourse, and verifiable accounting of where your money is being invested, and proper accounting of production from your oil & gas wells, and fields.
Dear Investors, if making money, and not ‘losing money’ is important to you, and a concern for having too much confidence in the stock or bond markets is on your mind, there is an alternative where you can have cash flow from oil & natural gas production revenue while increasing your net worth with some holdings in oil & gas producing wells. You can achieve this objective and goal while investing along side folks in North Dakota, and other select areas in the country where the big public oil companies, large independents, and top operators routinely drill to find huge recoverable oil & gas reserves for big profits. If you don’t believe this is happening everyday you sit on the sidelines, quit reading right now.
I can show you who to do business with and why. My background includes working for two big brokerage houses as a broker, and learning the oil & gas industry from the top down, and bottom up. I have family members who’ve worked for over 50 years in the industry in multiple states, and still do. (If you believe federal & state government attorneys know everything about making money in the oil industry, or who you should be talking to or not, quit reading).
One of the best operators in the business is Continental Resources (CLR). Another good operator who has discovered the ‘formula’ to completing great horizontal wells in the North Dakota Bakken Shales, is Hess. You can add Whiting, EOG, Statoil, Marathon, and a few others. If in your opinion it makes sense to invest in the exact same deals, and counties where these very successful operators work and successfully operate oil & natural gas wells each day, keep reading…if you like the idea about getting recorded assignments in world class oil leases & oil & gas wells, and in counties where some of the best oil wells having some of the biggest recoverable barrels of oil & gas are being drilled in the country, let us know.
Call or email me your questions, and provide contact information if you are serious about diversifying your investment portfolio. My background includes over 30 years in the energy business, and my knowledge comes from day to day transactions in acquiring oil & gas holdings, operating oil wells, and most importantly to you doing so; while I’ve been figuring out who to associate with, and more importantly who to avoid doing business with while analyzing the best ways to make money in the industry.
There are four primary methods of making money in the oil business.
1) You can work in the industry and be paid a salary, and receive bonus ownership in producing oil & gas wells.
2) You can acquire or purchase stock in companies making money in the industry.
3) You can deal directly with landsmen who acquire ownership interests from mineral rights owners in counties and in leases where the best new oil & gas wells are being drilled each day.
4) You can work with a consultant who deals directly with both landsmen, and mineral rights owners and acquire direct fractional interest ownership in proven lease, and in the best counties where the most oil is being found each day. This is possible simply put, because the big oil companies, large independents, and the top operators don’t stay in an oil field that isn’t making multiple returns on funds they invest each day.
If you want more information about the business, and are qualified to invest for your own account give me a call. Dennis 805 701 7761 Leave a message if you want a quick return call. I work in the field, and travel to meet with hedge fund managers, and private investors, and will call you back as soon as I can.
Where would you want to be in a major market correction downward, or worse a major market crash where stock values, and equities lose their appeal?
If you can own oil & gas royalties, overrides, and working interests in the best area of the USA, and these investments are paid regularly by reputable Operators, and major oil companies; and at the same time are relatively unaffected by the stock market, wouldn’t you want this income during a bear market or crash?
Okay, change is tough sometimes, but riding a market down isn’t any fun. Diversification in instruments providing cash flow while markets sort themselves out lets you have some peace of mind.
Call or email me with questions. Editor: 805 701 7761