Investing in only the ‘best oil & gas drilling programs’ which are correctly put together, and then doing so with US private independent companies who can offer investors an opportunity to get far more cash flow than is possible when owning public stock is the key to making money while investing in private oil & gas programs.
Oil & gas investors can invest and own a big majority equity working interest in a private oil & gas program, while legitimately enjoying tax write-offs, which legally allow you to write-off more than your entire investment in just a few years after making your oil & gas ‘direct participation investments’. The ‘passive loss rule’ still on the books allows you very favorable tax treatment by the IRS, and lets you lower your gross income for tax purposes, and do so with your portfolio or passive income, as well as your active, and ordinary income. It’s a great deal, check it out.
If you invest with public companies they take the tax write-offs…strike one.
If you invest with public companies they offer a much smaller equity ownership interest…strike two.
If you invest with public companies you only have a very small portion of an equity appreciation they can establish by constantly funding, and developing on their time table, which is usually at least 5-10 years and normally much further out…strike three.
If you invest with public companies you must deal with the stock markets, and the uncertainty, and enormous number of variables which affect the value of their stock. I just saw a statistic yesterday, the market has only gone up about 3.8% during the past 10 years based on the close yesterday. Isn’t this a terrible return?
When you invest with a private oil & gas company, or with an oil & gas operator who controls the majority ownership in the leases you invest, you have the opportunity to profit immediately from new discoveries, and get your share of the cash flow from new production, and greater ‘recoverable reserves’, and in successful wells this return can be very substantial…you are now on base with a single.
When you invest with the right private oil & gas company having an ‘exit strategy’, liquidity is provided when the oil & gas independent company sells or flips the net assets at an ‘online auction’ such as what people do at: http://www.energynet.com You have hit a double.
When you invest with the ‘best of the best’ independent oil & gas companies having an diversified investment model which fully spreads-out risk, and the company has a fully diversified portfolio of multiple oil & gas leases, and acreage, and with both… oil & gas wells, and pipelines, plus the company has an up and running infra-structure to support the production revenue being sold, then you have a better shot at success while investing in oil & gas…you’ve hit a triple.
When you invest with a group of professionals who are not only highly experienced and are in the habit of maintaining a ‘lean & mean’ overhead structure, and they like completing, or finishing what they start, then you are dealing with people on the right track. Independent oil & gas companies who ‘year after year’ are ‘consistently’ acquiring & developing oil & gas assets, and are always fully committed to help you succeed as an investor help you get a home run.
Call or email me with questions, and to find-out how to find an investment meeting the criteria discussed in this email.