Archives: June 2007
Fri Jun 01, 2007
'Investing in Oil & Gas to Capitalize on Demand'
Dear Investors, investing in oil & gas can be pretty exiting these days. Fundamentally very high world demand, and increasing oil & gas prices are occuring rapidly, and these prices are making the requirement for prudent passive investors to invest a necessity when private investors want to take advantage of the investment development opportunities we have these days in the 'oil patch'.
There are several important components which need to be made a part of investments made by private investors in any oil & gas investment in my opinion.
I like small privately owned oil companies who control 100% of the leases they option and develop, and own. This means they operate their own wells in almost all cases where drilling or development operations are the order of the day. Costs, and lease operating expenses can be controlled, and work can be let, and development operations pre-determined with better focus, and certainty than any public company looking at budgets, and world wide holdings which they need to manage. In other words, small well run teams can move more quickly, while achieving their objectives than bigger companies.
I like companies who are issuers by definition, don't charge commissions because they can't by law, and these same companies provide the majority of the working interest to their direct participation, working interest holder, or owners.
I also like companies who have an 'exit strategy' when going-in to any oil & gas deal. This means to me, there are 'production buyers' who can be courted, or lined-up to buy your fully developed leases, equipment, acreage, etc. for substantial profits. This plan of making money would also include making sure investors get their tax write-offs during the development process, and any distributions of production revenue along the way, and leading-up to a sale of hopefully, the now, increaed net asset value of your holdings.
Call me to discuss any ideas you have about oil & gas investing.
Dennis 408 975 0800 Cell: 805 701 7761
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