Archives: October 2005
Wed Oct 26, 2005
'Investing in Oil & Gas for Cash Flow & Great Tax Benefits'
Investing in new oil & gas prospects when you actually own direct participation, working interest ownership investments in oil & gas wells is a great way to make money, and get tremendous tax benefits... by investing in the best tax write-offs we have in the United States today, you can invest with some very sophisticated money, which is being allocated right now in oil & gas prospects developed by a few very good private companies.
It's hard to beat the upward price trends, and outstanding tax benefits, and write-offs we can still get in oil & natural gas investing today...especially when you can invest with a few very successful independents, and the major oil companies...this is a method where you can have the best possible chances to succeed...of course like anything else, you must take some risk, and you still have to be able to make decisions to alter your investment practices, to take advantage of a unique profit area some investors just don't normally target.
Making money in oil & gas direct investment programs, which are all about allowing you to own working interest in new oil & gas developmental & exploratory wells with direct participation, is all about diversification, and risk management, both requiring discipline, and some time...using a 'risk control model', which has been proven to work over time, is the only way to invest, in my opinion.
Investors can take advantage of high prices, and the best tax write-offs you can get in the US today, by investing in direct participation, working interest ownership in new oil & gas wells...but still get the incomparable tax write-offs, and tax benefits we have today...even after two major tax overhauls...in 1986, and 1993...obviously we need to stimulate the private money marketplace, and giving you investors wonderful tax benefits, such as the big first year 86% Intangible Drilling Cost (IDC) write-offs; while you take some risk for the upside that everyone wants, is the key, and an excellent way to go...
If you would like to know more, and have some questions about how you can take advantage of the superb timing in the marketplace for oil & gas investments, please let us know by email or a phone call...
American Energy Developments, Inc. americanenergy@gmail.com Office: 408 975 0800 Fax: 408 975 0803 Cell: 805 701 7761
AmericanEnergy@gmail.com
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Sat Oct 01, 2005
'Investing with the Right Oil & Natural Gas Developers'
Investing in oil & gas private investments...or most importanly determing with whom you want to consider investing, and then acquiring direct participation, working interest ownership in new oil & gas developmental, and exploratory prospects...or new commercial wells; can be a very big challenge...the most challenging part in my opinion... is determining who is telling you the truth, and how you are going to go about finding-out early in a conversation whether the people you are talking with have enough experience, or knowledge, and capacity to perform in the manner they are telling you they can...especially when everyone you talk to tells you they have the best idea since 'sliced bread', and only they know how to get the job done...
Let's discuss some ways to figure-out very quickly whether to listen further, and ultimately decide you may want to invest with a private oil & gas company.
Be looking for the following clues you can use to make your decision about whether you should consider doing business with private oil & gas companies or broker/dealers who work with them.
First, broker/dealers are the only entities allowed to offer oil & gas programs, where-by a commission is being paid to a registered representative...unless there is a prior association, or a direct call to an issuer by an investor is made...and where no commissions are paid...in which case the issuer, or oil & gas operator, or 'prospect generator' must liason with, or work through a registered and licensed broker/dealer...this is the way it's done properly...don't be tempted to invest with a company who doesn't meet these requirements. Major brokerage houses have exempt status, and because of extensive reporting they must do...they can offer oil & gas investments which are exempt transactions...however, I have seen few oil & gas partnerships offered over the years by large brokerage houses that made any money in oil & gas.
Registered representatives are the only people today who are legally allowed to offer private placement memorandums (PPM'S) where a commission is paid...a representative, or broker has to establish several things when calling you... that you qualify, and are suitable for high risk investments for starters...brokers must be licensed in every state they are making contact with prospective investors, or when making an offer to any potential investor in oil & gas...no if's and's or but's...the broker/dealer which sponsers him must also be registered and licensed in each state it expects to do business.
You should definately be asking the person calling, or contacting you about his status as a registered, and licensed individual...and his firm...there are far fewer than you might imagine who work for a broker/dealer which is licensed, and registered in each state offers are being made by either the broker/dealer or by any registered representative it employs...this process alone will weed-out 95% of the people calling you, and who are asking you to invest in oil & gas deals...
Doing business with a registered and licensed broker, who is working for a registered, and licensed broker/dealer also gives you substantial protection from the SIPC, and additional insurance of up to $100,000 for your account... check with your state's securities administrators to verify these important benefits to you when investing through legally set-up corporations following the securities regulations, and engaged in the oil & gas business in the US.
Second, any legitimate broker/dealer must send you a 'customer account form', and suitability paperwork...in advance of a memorandum...legitimate companies must be asking you for personal information which allows a registered representative, and his broker/dealer to make reasonable assurances you are not only suitable for the investment, but that you are qualified, sophisiticated, and accredited investors...there are a few exceptions to these strict requirements, but very few...
Third...in most cases stay away from the shallow gas deals, re-entry's, and work-over's the poorly capitalized oil & gas promoters like to offer...remember, if it takes little money, it most likely has very little real upside...worse, if things don't go well, you will have very little recourse...for the simple reason...if small companies, or promoters have little money, which is most often the case... they also don't have 'deep pockets' either...not a good situation for you to be in with someone you are contemplating doing any business...
Finally, you should be able to talk to anyone at the company, make visits to the company, check on the company with banks, creditors, suppliers, sub-contractors, and larger independents, and major oil companies to vouch for the legitimacy of any company you are considering doing any business...I have learned the hard way to heed these suggestions...call me or email us with any questions you might have about investing with both registered and licensed private oil & gas companies... Our Ofc: 408 975 0800 Email: americanenergy@gmail.com website: http://www.oilandgasinvesting.com
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