Archives: December 2007
Fri Dec 21, 2007
'Investing in Oil & Gas this Year'
Investing in direct participation 506 Reg-D private placement oil & gas investment offerings offered by small oil companies or directly with oil & gas operators which allow you to take advantage of the many federal tax write-offs is smart, and just good business at this time of the year. This is especially true when you need tax write-offs, and want to lower your gross income for tax purposes. So is making money in a well thought-out, and fully diversified program or in an ongoing cash flowing project.)
Now, if you happen to find a well diversified, low risk oil & gas project that is currently producing, and it also has loads of upside, plus is nearly fully funded, would you be interested? What if a majority of the development plans have already been executed, and the project is nearly completed? Would you like to know about such a project? Contact me at the email I provide you, or give me a call if you would like more information about a project I'm convinced will continue to do quite well, and is a project having tremendous upside to boot.
Finding good oil & gas prospects is a function of super sleuthing, or knowing who the inside field contacts are, and having great net-working skills, and follow through. You must be very determined, and persistent to find the 'nuggets' and best opportunties worth pursuing in our industry. Then, you must stay the course until you get the pay-off. It's not easy, and if it was everyone would be doing it.
You don't want to deal with new kids on the block, just because oil & gas prices are high. It takes a lot more than high oil & gas prices to make a profit in our business. IF you don't know the oil field mentality, and you don't have experience at dealing with the sub-contractors you will get your head handed to you.
The big brokerage houses learned at considerable economic expense in the 70's & 80's, the fallacy of putting big money into oil & gas without knowing the right people, and the 'lay of the land'. You need to operate as do the small, but highly trained 'teams', as they say in special operations, such as what the Navy S.E.A.L.'S do, to control the many variables that can bite you if you don't do the research, and planning for a successful operation. It's the same when you develop any oil & gas assets.
If you would like to hear more, or get started, please provide your contact address, phone number, and email address.
Call or email me with any questions about oil & gas. Dennis W. Stutes, CEO, American Energy Developments americanenergy@gmail.com dwstutes@sbcglobal.net Ofc: 408 975 0800 Cell: 805 701 7761
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Wed Dec 12, 2007
'Investing in Oil & Gas Private Programs'
Investing in oil & gas drilling projects being offered by private companies is usually like investing in a small business. My preference, for many reasons, is to invest in a Limited Liability Company (LLC). The advantages are you can be a passive investor yet still take the generous federal tax write-offs which are still available with our current oil & gas tax codes.
Beware, as believe it or not, some accountants, and CPA's are not familiar with the big tax write-offs you can take in oil & gas drilling programs. Talk to CPA's or tax preparers who can intelligently discuss oil & gas tax write-offs. Professionals often say no, as it is a safe position to take relative to evaluating any investment. They charge consulting fees, and bill by the hour, but their big fear is if they recommend an investment, and it doesn't make you money or perform well, they risk losing you as a client. Most won't do this. Therefore, you must do your own homework, and invest only what you can afford to lose if things go South.
What's pretty important is coming to grips with the risk you are going to be taking with people you don't know when investing in oil & gas, however, at some point during your 'due dilligence', and review of the private placement memorandum (PPM) which must contain all of the pertinent details of an offer, you need to arrive at the point of feeling comfortable enough to invest at some level. I haven't seen a deal yet that doesn't allow you to invest in smaller increments. If you cannot do this, don't invest in the oil & gas program.
The main reason to invest is because of our current tax advantages, and write-offs associated with making investments in 506 Reg-D programs. This can be another way to hedge your portfolio and reduce your gross income for tax purposes at the same time. It also allows your developer, operator, or oil company time to fully develop the oil & gas assets they've targeted and are described in the PPM used to provide a mechanism for investors to invest.
I have noticed lately some investors who are looking to invest, but tell me they know little about the oil & gas business. This can be a problem, since learning everything about any business is hard to do in a short time. Investors can approach investing in essentially one of two ways. Learn everything you need to know which could take an inordinate amount of time & effort for example, or simply invest an amount of money to begin that isn't going to cause you to lose sleep at night.
It takes time to make an oil & gas project successful...and the more fully diversified, and more complex deals with more wells and profit centers, usually take longer to complete. However the downside is minimized, and the upside is assured or is better than investing in a new 1-2 well drilling program for example. This is true because your downside is spread-out relative to risk. You still get the tax write-offs in any drilling program where a K-1, or 1099 is provided you by the company you are investing with at tax time each year.
Call or email me to find-out more, and to take advantage of the investing opportunities in oil & gas drilling programs at the end of the year for tax write-offs.
Dennis W. Stutes, CEO, American Energy Developments americanenergy@gmail.com dwstutes@sbcglobal.net Ofc: 408 975 0800 Cell: 805 701 7761
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Tue Dec 04, 2007
'Investing in a Currently Successful Oil & Natural Gas Production & Development Program'
Investors who like making money need to without delay contact us at our private oil & gas company prior to the end of the year. We're now closing-out our funding for a current oil & gas private direct participation program we've been funding during the past year. We have current production, which is increasing dramatically as a result of making new acquisitions, and because of our extensive development & new drilling we've accomplished during the past year. We are making revenue distributions to our investors each month now.
We have more drilling planned during the first quarter of 2008. Investors who like to invest at the end of a funding period in a successful private oil & gas program have the opportunity and can now take advantage of the successful efforts of our staff, and fine tuned field operations we've established during the past year.
We have acquired, because of our careful negotiations at prices well under value, a very good collection of producing oil & gas leases in several areas of the country. Our extensive past experience and as a result of performing a lot of prior 'due dilligence' made this possible. Because of our considerable amount of preparation and work, our revenue returns to investors is expected to soon exceed all or most of the current programs I've checked-on, or heard about recently.
The chief reason we've been able to attain our present performance, and reach respectable and increasing revenue distributions to our investors, and now increasing pay-outs to our investors is because we kept, and keep our overhead costs down. We find leases and structure our private oil & gas investing programs to pay a majority of the working interest to our investors. We don't charge promotion or advertising costs, and cannot charge commissions, since we own our private oil & gas company, and rarely need to work through sales organizations, or selling brokers. This makes a big difference relative to the amount of net revenue you can pay to investors.
If you are looking to invest in oil & gas before the end of the year, and want to take advantage of the tax advanatages, and start making money right away, let me know. We would like to show you what's possible in this industry.
Dennis W. Stutes, CEO, American Energy Developments email: americanenergy@gmail.com dwstutes@sbcglobal.net
Calls: office 408 975 0800 Cell: 805 701 7761
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