Archives: December 2003
Mon Dec 22, 2003
'Investing In Natural Gas & Oil Before the End of The Year'
Taking the available tax write-offs in a good oil & gas investment program just makes very good sense...especially... if you need to lower your taxable income, and you want to take advantage of the special tax benefits, and oil & gas write-offs that you can get from the IRS, when you apply... for one example, the Intangible Drilling Cost write-offs...that are associated with a first year oil & gas investment...
Therefore...applying the oil & gas tax write-offs correctly when computing you tax owed, can result in a tax savings...or the key point is that your tax can be less... when you are taking advantage of the oil & gas IDC benefits...now I'am not an accountant, or CPA, but I do pay them good money to give me the correct answers...I'am even going to buy a soft ware program my CPA recommended to get a better idea of what taxes can be saved when making the oil & gas investment...as soon I get the name of the software, I'll make it available to you...
The most important requirement in a good oil & gas investment is that it makes you money...the tax benefits become the 'gravy'...or the justification for the taking some of the risk associated with making investments in oil & gas programs.
Call me with your questions, and ideas about who to invest with, and where the best area's still exist to make money in the US.
Dennis W. Stutes 805 701 7761 emailto: dwstutes@sbcglobal.net
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Mon Dec 15, 2003
'Investing in Natural Gas and Oil... Prices...They Went Up Again Today'
Investing money in any investment... requires your careful study, and consideration of all of the facts prior to making the decision...knowing the risks, and rewards are all part of the process you follow, to make that final determination of whether to invest...or not. If you want to build a net worth, and be able to retire with adequate financial reserves... you are probably going to need to make money by investing...your salary will not be available some day...
Just remember one thing...it's your money...advisers are essential, but only if they are willing to fully evaluate an opportunity, and are competent to do so...there is an old saying..."If you succeed, your advisers will usually tell you..."I knew you could do it!" However, if you fail, they will often say, "I told you so!" The most important consideration might be they are always right...whether you succeed or fail, or whether you win or lose! When you make money, the 3rd party, or outside adviser doesn't usually get paid...you do, conversely, when you fail to make money, the adviser is out nothing...since he doesn't guarantee you anything, either way...You must ultimately make your own decisions in this world...the more decisions you make, the more you can make..."If you want to increase your chances for success, double your failure rate!" Bill Gates
Now if you must have an 'investor representative' because of a requirement to satisfy the stipulations of a 'trust', or to meet, and follow the requirements of your asset managment philosophy, the need to follow the investor representative's advice may be required and therefore unavoidable...most successful people listen to advice...but in the final analysis...they make their own decisions.
There are many variables to consider when deciding to invest...Cash flow expectations, potential loss of capital, total return that is possible, and how soon you will start getting a return on your investment... are all key issues of concern for 'sophisticated' investors. Tax issues are also a big concern for the investor wanting to legitimately reduce his taxes...
You know my point of view...oil and natural gas investments can be a very good way to make an excellent return, and reduce your taxes...a great combination.
Contact me to hear and learn about a company who can help you achieve your financial goals, and make a great return on your investments...
Contact: Dennis W. Stutes 805 701 7761 emailto:dwstutes@sbcglobal.net
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Sun Dec 14, 2003
'Oil and Natural Gas Investments'
Most of us hate thinking about doing our taxes, and want to know we are doing everything possible to legitimately reduce our 'gross income for tax purposes'...when our 'marginal tax rate' is applied to calculate the taxes we owe...If you are one of many 'qualified investors' needing tax relief, and you want to invest with a legitimate company engaged in the development of some of the best oil and natural gas reserves in the country today...keep reading!
Your tax preparer can easily calculate your savings in tax, by using the K-1 tax forms used by professional oil and natural gas developer's, and operator's... to properly account for, and supply the specific information required by the IRS when you make oil & gas investments.
Burying your head in the sand should not be an option you elect to make...if you want to take advantage of the many ways that an oil and natural gas investment can reduce your taxes, and make it possible to enhance the rate of returns possible in oil and natural gas investments...then you must act before the end of the year.
So, regardless of whether you have: ordinary income, corporate income, passive, or portfolio income, capital gains income, or any other income being added, and included in your 'total gross income for tax purposes'...and you would like to know how you can reduce your 'gross income for tax purposes'... then you will definitely want to know how you can take advantage of certain, very important tax benefits, and write-off's...that are still available to oil and natural gas investors...act soon... or needlessly lose these important tax benefits.
If you would like to hear about a company that not only makes great money for it's investors in the oil and natural gas business...but can also help show you the very special ways you can save more taxes...than is possible with most investments...call me: Dennis W. Stutes 805 701 7761 dwstutes@sbcglobal.net
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Wed Dec 10, 2003
'Natural Gas Price Increases'
Natural gas prices often go up in the winter months because of greater demand, and because drilling is more difficult in the winter, and reserve stocks are being drawn down... gas utilities want to make sure they get their volumn of gas needed, and are willing to pay premium prices for it from the the pipeline companies, when they think availability might become an issue...the law of 'supply and demand'...and the 'fear of scarcity principle', is operating here...
Why not take advantage of this phenomena...and look into investing in natural gas wells, and be on the 'other side' of the equation; that is, why not make money from investments rather than just paying for the natural gas, and oil you are using?
Most of us have cars...we need to fill our gas tanks more often in the winter, why not make some money to offset the expenditures for both natural gas and oil...in your home, and your car, etc?
Don't forget the tax benefits and advantages to investing in oil & gas before the end of the year...once you send money to the IRS...it's gone...the IRS code allows for very generous tax benefits for oil & gas investments...these legitimate tax benefits have been retained for a reason...we need to continue to develop...and explore for natural gas, and oil reserves in our country...just to maintain our supply...and strategic reserves, plus keep-up with the increasing demand in this country...We still do produce about 45% of the natural gas, and oil production we use in this country...we must maintain our efforts...or be forced to depend more and more on foreign resources...which futher upsets our 'balance of trade' ratio.
Call me with questions and ideas about where to invest, and with what company I'am recommending these days...
Dennis W. Stutes 805 701 7761 emailto: dwstutes@sbcglobal.net http://www.americanenergydevelopments.com
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Sun Dec 07, 2003
Onshore/Offshore Investing, Oil & Natural Gas...Should You Drill Shallow, Medium, Horizontal, or Deep Wells?
How do you know what to invest in...or where to invest? Simple, where they are making excellent returns on capital invested, and the 'recoverable reserves' are the largest...based on a money-in versus money-out equation...You also should expect to start receiving cash flow within a reasonable period of time in a typical, and decent development program...six months is great, 9 to 12 months is okay, 12 to 14 months is long enough...longer than that, and the cash flow, and recoverable reserves better be substantial...accountants like to talk about 'Internal Rate of Return' (IRR). If it takes too long...something may "...stink in the state of Denmark!"
Objective, situation, mission...excellent profits...long term pay-outs...and great tax benefits...You also want to be associated with a company that has great command and control, and the best logistical and transportation support possible...sound like a military operation... the 'Ranger Handbook'? It just might be...plus intelligence, intelligence, intelligence...kind of like real estate...location, location, location.
If you are relatively small in the industry...you don't want to be building huge infra-structure, and then constructing miles of pipeline...Let the 'big boys' prove-up an area, and build the necessary pipeline, and production infra-structure...then you can take the very tasty, but ample morsels, and crumbs that fall from the rich man's table...You don't need to make 'obscene profits'...just very good profits...
Sometimes through great geology, and smart science used by very smart, and accomplished scientistis, you can be first...it is difficult to do without a lot of money, and a very large bank roll, but if your costs are low, and you work with the absolute best industry partners... that is top people who are developing in the most lucrative areas... you can win...
I know of a company that is winning consistently by using the formula I'm referring to...which by the way is one of the keys to making profits in the oil & gas industry...Paying attention to the fundamentals, and using basic common sense...this approach can go a long way in our business...
Contact me for more information...Dennis W. Stutes 805 701 7761 dwstutes@sbcglobal.net http://www.oilandgasinvesting.com
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'Investing in Natural Gas'
Investing in natural gas...should be a natural thing to do in the United States...especially since we have a fairly even distribution of reserves of this clean burning...and lower emissions form of energy, when compared to oil...of course you need a 'gathering & distribution system', plus networking pipelines to transport the natural gas from where it is found to the end users...or you the purchasers. This gathering and transportation system', is already in place in most natural gas producing areas of the United States.
One of the challenges with natural gas transportation occurs because of all the variations in pressure from natural gas wells...sometimes you need compressors on each well...which permit entry of the natural gas into the high pressure lines of the pipeline companies...occasionally you'll need to use 'scrubbers' to scrub poisonous H2S gases from your well's production...Water can be a problem...pipeline companies don't like excessive water coming through their lines...therefore, you need heater-treater's, and 'dryers' to prepare your natural gas production properly to sell, and transport it through the gathering systems, and pipelines around the continental US...
It is expensive, and at present 'cost prohibitive' to 'liquefy' natural gas; hence the reason why we don't ship it in from overseas...it's cheaper, and economically more viable, to find it here in the United States, and transport it to where it is needed...not to mention the 'economic value' of supplying our own needs for energy, and not having to rely so heavily on foreign imports.
Sometimes natural gas is stored in large, underground, 'salt domes' that have been depleted of hydro-carbons in the past, and can still be used to temporarily store our natural gas reserves...but we must keep drilling for it, since our country's demand is so great...
Whatever the considerations are for producing, and transporting natural gas and thus providing adequate amounts of natural gas for our needs... we as investors can benefit from investing in development programs to recover, and sell this important, and valuable commodity.
Most of the energy production found in the US is natural gas...which by the way is cheaper to produce than oil...with fewer moving parts as part of a well's nomenclature, and the operating costs are less as well...the net result is more profits for investors...the price is certainly high enough to enable investors to make substantial money in this industry...if...you know the right people to do business with, and they are in the most lucrative, and productive areas to find this very valuable natural resource. Dennis W. Stutes 8905 701 7761 dwstutes@sbcglobal.net http://www.oilandgasinvesting.com
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Sat Dec 06, 2003
'Making Money Investing In Oil & Gas while Prices are High'
Hello investors: well again this winter, when the company I like, and invest in myself, is completing some of it's largest oil & natural gas wells ever...the market prices are up substantially...10-20% higher than a couple of months ago...this can bode very well for oil & gas investors, and getting higher rates of return on funds invested...although prices can and do rachet back down in summer, a faster return of capital is occuring now during the cold months...
Why not take advantage of these higher prices, and great tax advantages, and benefits before year's end...the Intangible Drilling Cost Write-off's (IDC), can be up to 86% of the funds you invest, less what you must pay based on your marginal tax rate. Also, the amount of tax write-offs you don't need to take this year... can be carried forward.
These are not the old mulitiple tax write-offs of years ago that were later 'retroactively dissallowed by the IRS'...these are legitimate IRS code tax benefits that permit you to lower you gross income for tax purposes with an investment in an oil & gas developmental, or exploratory drilling program...these tax benefits, apply across the board, whether you have: portfolio, passive, ordinary, sales, or capital gains income, etc....
The net result...as I understand it... is you get to use your oil & gas investment, to reduce your annual gross income, based on the amount you invest in the oil & gas developmental drilling program, less what 'marginal tax rate', you must pay after deductions you are entitled to, and take on your return. The is the first year IDC write-off you are entitled to, when you make an oil & gas investment. Of couse you should consult with your tax preparer, or CPA to fully understand and know when to be able to take, and apply the tax benefits you are allowed.
Contact me for additional information, or to receive an investment package....Dennis W. Stutes 805 701 7761 dwstutes@sbcglobal.net Natural Gas Investing
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Wed Dec 03, 2003
'Investing in Foreign and Offshore Areas'
Our purpose in visiting this over seas area was to review, and evaluate potential natural gas, and oil development opportunities in Micronesia, including Indonesia, the Phillipines, and Vet nam...
We were quite surprised at their system of doing business... in particular Indonesia, where you often have to put-up significant money, that is, up front... just to get the opportunity to invest in a prospective area...this didn't sit well with us...that is with the US company I'am an investor with, and regularly recommending to my investors.
The political instability, coupled with what we considered the 'excessive greed' on the part of the local politicians... with oil & gas connections, didn't 'float our boat'. We know we can do better...and regularly do so, in the US...for example in the onshore, and offshore areas of Galveston basin, Texas, and Lousianna. By the way... we can also get better pay-out's by far in the US...then these foreign development areas...call, or contact me, and I will fill you in on the details of my trip, and what we learned... Dennis W. Stutes dwstutes@sbcglobal.net 805 701 7761
Investing In Oil and Gas
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'Big Wells Are Coming On line As You Read This Update'
The company I'm recommending, and that I'am also an investor with, is completing numerous big... new wells, right now with it's industry, and private partners...
There are several new wells coming on line with very big production numbers...there is room for you in these; 'producing programs, drilling packages, and single well exploratory tests right now!
The company I'am recommending is having great success...they have had very few dry holes during the past two years. In one area, our drilling partner has completed 21 out of 24 wells for an 87.5% hit rate...in other words, this company has established commercial production in all of these wells they have completed. There is absolutely no reason why you can't be a part of the success of the company I'm suggesting...if you qualify.
Remember, there are different types of well drilling programs...including the purchase of producing wells in an income, or cash flowing package. There are new development wells...where exisiting field production is present, and of course there are exploratory wells, or 'wild cats', where the faster pay-outs can and do occur...sometimes in a matter of a few months after they are brought on line, and production checks are sent to investors.
It doesn't cost anything to check us out, and review investment information....If you believe you qualify to be an investor with us...give me a call, or email me with your contact, and address information... Dennis W. Stutes 805 701 7761 dwstutes@sbcglobal.net
Investing In Natural Gas
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Mon Dec 01, 2003
'Rising Oil & Natural Gas Prices'
It's always nice to be investing at a time when the prices are higher than normal for your product or service. Such is the case these days, and in these winter months in oil & gas... when the demand is now higher than usual for both oil & natural gas. We time the drilling of key wells for this peak demand time of year...a bit diabolical maybe, but the profit motive is after all what drives a successful corporation or business. Making people money is a big concern, but profit is an even bigger one...There is money to be made in the oil & gas business, and I can show you where to make it, and the people you will want to be associated with, to achieve this goal.
Taxes are on most people's minds at the end of each year...and this is where a great oil & gas investment shines...especially if you can get substantial tax benefits at the end of the year, and be able experience the opportunity to receive higher than normal returns... because at present higher market pricing...you are going to get the chance to receive higher cash flow. I know of a company that will be paying you cash flow within a couple of months after making your tax advantaged investment at this time of the year...I know of such a company, you can position yourself with... right now...allowing you to take advantage of the exceptional year-end tax benefits, and most importantly, start receiving cash flow in the first quarter of 2004. emailto: dwstutes@sbcglobal.net
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'Contacting Us'
Dear Investor: You can email us directly, call, or provide your address and phone number if you would like to be contacted, or you want us to send you our latest private investment offering. We must be able to converse in order to do business.
Sincerely, Dennis W. Stutes, Consultant email: dwstutes@sbcglobal.net
http://www.oilandgasinvesting.com
http://www.americanenergydevelopments.com
805 701 7761
Fax 408 975 0803
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'Ways to Find the Right People and The Right Company
It's easy if you know how...here are some ideas I've ranked in order of their importance...
1) A company you are considering doing business with must have an identifiable track record in the business...and they must provide some proof. Testimonials are good, if you can talk to a few of their investors...If they will let you talk to their industry partners...even better. Vendors, and contractors should be provided as references, as well as, sub-contrator names, and contact numbers. These are minimum requirements you should consider when analysing an investment opportunity in the oil & gas business...
2) You need to be able to talk to the 'big kahuna'...or the senior management...this will give you a better feel for what the company is all about...it's goals, and system for making money, and dealing with investors, and staff. Afterall, the managment can make or break the investment...It helps if there is some depth to the organization, and it is doing business with other industry partners. Great companies regularly consult with other pro's in the business, and these other industry partners are usually very much a part of the decision making process of the management of the company you are planning on investing with.
3) Everyone, and all investors should be getting the same deal...things shouldn't change everyday...flexibility is good, but a development plan once decided upon should flow toward the finish line in about six months to a year...no longer, in my opinion. If it takes longer, the company is probably not as organized as they should be, or worse, they are not able to raise the funds they need to complete the project. This is typical with 'promotional type companies' who don't have industry partners with money, and aren't able to attract industry partners to their deal...You don't need this aggravation.
4) Heads-up, or low promote deals...this is hard to determine for someone unfamiliar with the industry, but it can be accomplished by asking to speak with other partners, in the deal...Reputable companies will provide you with at least a point of contact, and an address of all of the partners in a given development prospect. A face to face contact at the company's offices, and a frank conversation with support personnel, and field representatives can help zero-in on this cost concern, or typical cost for the work being done. You can ask about drilling rates, and completion costs for the area, and get a pretty good idea of the promote, if you are relatively good at comparing notes, based on who you talk with, and then looking at the company's investment offering. This can be misleading if special techniques are called for on a given well, and if there are major companies involved with certain over-rides, or after pay-out compensation.
5 ) You should be very concerned about the area, and technology the company has and is familiar with implementing...Some companies never leave their own back-yards...this is okay if you subscribe to the 'acres of diamonds' idea, however, in the oil & gas business, there are certain areas in the US that are almost always productive, and it is where the big boys, and their good friends are...and you need to be in this place...and at exactly the right time...The best time is at, or nearly at the very beginning of a new field development. Lot's of reasons for it...you want to be given Area of Mutual Interest Rights (AMI), and you want to be extended the 'Right of First Refusal' to participate in all subsequent new wells, and have the option to be a part of all development activity in a new discovery area. I said option, not obligation...You don't want to be forced to invest in future wells. There should be a 'non-consent clause' in the agreement that spells-out the basis for your right to abstain...or participate in future new wells the company wants to drill in a new discovery prospect
6) Multiple well programs with lot's of diversification, and serendipity, plus large recoverable reserve discovery potential... is what I like in a program...ten well, fifteen wells in a program is usually very good, because you still get lot's of working interest ownership...it doesn't take too long to establish cash flow; with multiple drilling rigs operating, and the science and technology is usually able to tie wells, and fields together... to raise the success possibilities even more...especially, when you compare this approach to that of drilling a one well test, and hoping for this particular well to be the 'key well' in the field, or at the least a commerical producer...When you first start, you probably shouldn't take this type of risk, unless you place a small amount of your total allocated budget in the one well test, and then be willing to invest in a fairly large number of wells. Diversification is an absolute must in the oil & gas development business.
7) I know of such a company that fits the profile for what I look for... and it's people can and do deliver...this company raises the 'bar of required performance' at regular and consistent levels, and never rests on it's laurel's or past success...the company is on the absolute cutting-edge of the latest technology...and the company has a track record of finding, and establishing commerical production in over 75% of all of it's wells attempted...currently, they are doing better than 80%...and because of their philosophy of making people money, they even substitute their poor producers with better producers in the production programs they offer to the private investor! Who else do you know doing this sort of thing? Let me know if you know someone who does!
Well, duty calls, and I must follow-up on email, and phone messages...call me, or email me with your questions, or to receive an investment package from the only company I exclusively recommend these days to investors wanting to make money in oil & gas investments...
Dennis dwstutes@sbcglobal.net
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'Making Money as an Investor in Oil & Gas Investments'
Dear potential investor: I can put you in touch with investors making money every day, and every month in oil & gas investments suggested, or recommended by me and my friends in this business...it's sometimes difficult to find the right people...and get invited to participate with them...but it can be done, and we do it every day...You can only find-out, or discover how; if you are willing to take a first step...it always takes at least a look to discover anything new...you don't have to miss-out...just give me a call, or email me at my contact information shown at the end of the introduction to my website... http://oilandgasinvesting.com
I talk to investors everyday who are frustrated with the returns they are making on their investments...for example, yesterday, while I was at a local health club that I'am a member, I was talking to a friend, who was telling me how badly his GNMAE'S were doing...and his CD's were only returning something like a 2% return...he was looking for better, and asked me what I thought could make him more on his money....I told him my investors were getting 30% to 50% plus in a range of various oil & gas investments...he laughed, and said I can't take that much risk...so I asked him what amount of money he could consider risking at least in something other than what he was currently invested...all this 58 year old still working individual could talk about was his fear, and inability to change anything he was doing presently, and this was frustrating him greatly...
I told him it doesn't cost anything to look at any alternatives, and consider another option, or investment idea...he could only repeat what he said earlier...this 'frozen in the mud attitude' seems sad to me, as I think it is often very typical in the stock market...here in silicon valley where I live...investors have literally allowed their stocks, and portfolio's to diminish to the point of a ridiculously low value, sometimes to nothing...before they were disgusted enough to take action a few years ago...this seems absolutely unbelievable to me...My philosophy is if you don't follow your own mind, you will be following someone who is following his...this is only a good idea, if the other guy is doing well...if not, it would seem to me that a major change is in order...Maybe I'll get another chance to talk to this club member expressing his dissatisfaction with his investment returns.
People do what they do in this world to gain a benefit, or avoid a loss...I guess when fear incapacitates you, you really are stuck...personally, I believe life is too short to watch it all going by...there is a saying..."the more choices you make, the more you have to make!" Not making a choice is making one...doing nothing about something that is hurting you, doesn't make sense...what do you think? Let me know.
P.S. "If you want to succeed faster...double your failure rate!" Bill Gates
Contact me at: dwstutes@sbcglobal.net
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'Investing In Oil & Gas Today'
Dear Investors: I'm working on a newsletter to cover some significant differences between the way the Oil & Gas Investment world was in the 60's, 70's and 80's, and even early 90's; versus the way we conduct the business today.
I'll likely call it something like the "100 Differences Between Oil & Gas Investing 20 or 30 Years Ago...And Today!'
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