Dear Investors, we’ve observed a ‘trend’ in the last few years which is making it difficult for many private investors to take advantage of the best opportunities offered by those oil & gas professionals who are called industry people.

Due dilligence is important, mandatory, and is a necessary part of investing. However, ‘analysis paralysis’ is not going to permit you to make money in fast moving, ‘boom markets’ such as the Bakken Shale plays in North Dakota, and Montana. The ‘majors’ or publically trading oil companies with their deep pocket money, or other public companies who are in the oil business will drill-out the lucrative formations, and best oil zones, and take the money. You will never get an opportunity to be in the play ground with the big boys if you ‘snooze you lose’.

When you have decided you have found; a credible industry person/company, an operator, land man, or ‘real deal’ offered by a bonified sponsor/issuer, you must be prepared to move quickly. If you want to make money, you have to move money when opportunities are available…don’t wait for the ‘fat lady to sing’.

The Bakken Shale is a very competitive place at this time for example. Our experience is a week to 10 days is all you have to make a decision to move money to participate in an ‘industry’ drilling program. A good time to invest for example is when the drilling permit has been granted, the drilling rig is selected, and on location, or the industry partner has drilled the vertical portion of the well, a big rig necessary for the horizontal borehole is being moved on location, and after the horizontal borehole is drilled, the fracing operation follows. Cash flow can be a few months off.

Major oil companies must issue Divisional Orders, Joint Interest Billing Statements (JIB), Joint Operating Agreements (JOA), Title Reports, and Non Disclosure Agreements to all owners, or these documents are made available to divisional order owners by the controlling interest owners, which is always the operator. Sorry, control is an illusion…you will be a ‘non-operator’…and some very big companies invest in oil & gas industry deals as non-operators.

In the meantime, you will be filling-out questionnaires, and reviewing memorandums to meet Federal & State regulatory requirements if US investors, and you will be electing to participate by sending funds to do so. If you cannot move this fast…avoid the business all together, and simply buy stock, bonds, or CD’s.

Sorry, but this is the way it is, and standard operating practice in the oil & gas industry among industry professionals. Call me for details…Dennis