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Investing in Oil & Gas private deals is well worth considering when you compare other options to making money in passive investments, or any other investments I know of that still have very good, and legitimate tax write-offs. There is ain investment strategy using a model I've proven to work, and have been using it for 20 years. http://www.oilandgasinvesting.com
Investing in fully diversified, and risk managed investments with oil & gas operators, and small independent oil companies may still be the best way to go to make money and have a big upside, versus investing with those promoted deals which are also often heavily promoted. I'm talking about the boiler room operations, whereby the people selling know little about the business they are offering working interests, or equity ownership.
Investing in oil & gas seems to be a secret to many investors. We often see new break-throughs, and discoveries occuring in the oil patch, and better ways to go about finding oil & gas and working-out new completion techniques. The truth of the matter is the oil & gas investing bargains are out there, but you must know how to find the opportunities that can stand the scrutiny of any serious due dilligence.
I like to know the company I'm doing business with purchased their oil & gas properties they operate at well under market prices. I also like to see a company provide an inventory, and equipment list, which allows you to easily compare, and determine the fair market value of their company equipment & physical assets, and net assets.
Establishing a value of oil & gas net assets for re-sale is based on fixed equipment, and physical assets, plus 'present cash flows', as well as the 'proved producing', and 'proved un-developed reserves, or what the 'recoverable reserves' are likely to be. Price is also key. You have the best assurance of the net asset value when an appraisal is performed by a licensed petroleum or professional engineer. This would be an appraisal acceptable during a bank review to determine value, and would make an exit strategy easily accomplished in the marketplace when selling oil & gas production, or electing to take a company public as an exit strategy' to provide liquidity for investors. http://
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Providing an exit strategy for selling oil & gas assets when investors are investing in private oil & gas direct participation investment programs is a must in my book. This means doing business with privately owned independents who own 'controlling interest' in the oil & gas assets they manage & operate. A company must decide to structure oil & gas deals at the inception of their development plan, in order to someday sell to industry partners, or package net assets for sale, for example, in a public auction, or by taking a company public. http://www.energynet.com
Its your money, and you can do what you want with it of course. Losing money, or your capital is no fun. Having it taxed away isn't either. Keep in mind conventional thinking isn't always the answer. You must get comfortable with uncertainty, and develop some patience when you are investing in oil & gas private deals. It takes some time to fully realize all of the benefits associated with oil & gas investments with private independents. However, your upside can be much better than with public companies.
How can you find the companies who will help you succeed, because it can be harder than you think? Better results are achieveable when the investor is willing to do his homework. Track records and time in the business are important, but I think the most important elements are... the 'model' being used, the structure of the deal, and the manner in which the company spreads-out the risk, and provides the amount of diversification required to keep from losing your principal. I also think having an 'exit strategy' is a must today. This allows the investor some degree of comfort, and means the liquidity is available at some point during the investment holding period.
There are some good companies out there doing a great job at making investors money, and they can be trusted to do the best job possible while doing the work needed to achieve a successful outcome with oil & gas investing. Here is my blog site with Google. I offer some advice, and from time to time provide some helpful links you can use during your research and while looking to find-out who to invest with in oil & gas private programs.
http://www.americanenergydevelopments.blogspot.com/
Find people who love this oil & gas business, and have a real passion for it, and most particularly enjoy the feeling they get when making their investors money. Accessing the best minds in the oil & gas world is an important requirement to consistently making money, however, even the little guys can score when the big boys don't. Actually, there has been more oil & gas found by independents than by the 'majors'. Nothing is free in this life, however, my advice is to do your homework, talk to people in the business, and no matter what you decide, spread-out your risk by diversifying in many wells, and with more than one company no matter how good their deal looks & sounds. Dennis W. Stutes, CEO American Energy Developments.
P.S. Quote of the day. "Short term moves in the market are like tales told by an idiot!" Shakespeare
Contact me by calling 408 975 0800 or my cell at: 805 701 7761
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or my direct email address at:
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Investing in only the 'best oil & gas drilling programs' which are correctly put together, and then doing so with US private independent companies who can offer investors an opportunity to get far more cash flow than is possible when owning public stock is the key to making money while investing in private oil & gas programs.
Oil & gas investors can invest and own a big majority equity working interest in a private oil & gas program, while legitimately enjoying tax write-offs, which legally allow you to write-off more than your entire investment in just a few years after making your oil & gas 'direct participation investments'. The 'passive loss rule' still on the books allows you very favorable tax treatment by the IRS, and lets you lower your gross income for tax purposes, and do so with your portfolio or passive income, as well as your active, and ordinary income. It's a great deal, check it out.
If you invest with public companies they take the tax write-offs...strike one.
If you invest with public companies they offer a much smaller equity ownership interest...strike two.
If you invest with public companies you only have a very small portion of an equity appreciation they can establish by constantly funding, and developing on their time table, which is usually at least 5-10 years and normally much further out...strike three.
If you invest with public companies you must deal with the stock markets, and the uncertainty, and enormous number of variables which affect the value of their stock. I just saw a statistic yesterday, the market has only gone up about 3.8% during the past 10 years based on the close yesterday. Isn't this a terrible return?
When you invest with a private oil & gas company, or with an oil & gas operator who controls the majority ownership in the leases you invest, you have the opportunity to profit immediately from new discoveries, and get your share of the cash flow from new production, and greater 'recoverable reserves', and in successful wells this return can be very substantial...you are now on base with a single.
When you invest with the right private oil & gas company having an 'exit strategy', liquidity is provided when the oil & gas independent company sells or flips the net assets at an 'online auction' such as what people do at: http://www.energynet.com You have hit a double.
When you invest with the 'best of the best' independent oil & gas companies having an diversified investment model which fully spreads-out risk, and the company has a fully diversified portfolio of multiple oil & gas leases, and acreage, and with both... oil & gas wells, and pipelines, plus the company has an up and running infra-structure to support the production revenue being sold, then you have a better shot at success while investing in oil & gas...you've hit a triple.
When you invest with a group of professionals who are not only highly experienced and are in the habit of maintaining a 'lean & mean' overhead structure, and they like completing, or finishing what they start, then you are dealing with people on the right track. Independent oil & gas companies who 'year after year' are 'consistently' acquiring & developing oil & gas assets, and are always fully committed to help you succeed as an investor help you get a home run.
Call or email me with questions, and to find-out how to find an investment meeting the criteria discussed in this email. If you would like to review a current update to my investors, and prospective investors follow the Google blog link and click on American Energy Developments at: http://www.blogger.com/home |
Investing in oil & gas ought to be 'intellectually' a no brainer these days. This is especially the case when investors are comparing or trying to measure what their upside is or their prospects for making money are as a passive investor when investing in stocks, or real estate this year.
Analysts at Fox News reviewed our past year end performance numbers for the NYSE stocks, DOW, and NASDAQ as of the end of 2007. According to the analysts at Fox News yesterday the stock market did 6.4% last year, and NASDAQ a bit over 9%. However, also mentioned was when comparing this past year's performance with the stock market highs of seven years ago, there has been no gain. During the same analysis a comment was made that real estate values are at or near their 52 week lows.
If the total inflation of our economy is say 10% per year, and your money is now worth less and less due to: increasing taxation, and higher living costs, balance of trade deficits, the weaking dollar against international currencies, and huge government spending...then what are your options if you are presently on a fixed income, or might be soon? What if you are not on a fixed income, but don't want to see your money taxed away for dubious or ridiculous reasons? You will need to exceed a 10% yearly return on your investments to stay ahead of inflation, and have what you need for retirement.
Remember, there are few good tax breaks when you invest in the stock market, and real estate in most cases is an 'active or hands-on process'. You must maintain your real estate, and be attentive. You will often discover when you sell, the returns are not as good as you thought they were going to be, especially when you factor-in the time you spend, and the expenses you incur to own your real estate.
I know where you can invest in oil & gas private offerings and get immediate cash flow while writing-off most of your investment in the first year you invest. By diversifying in many oil & gas wells, and oil field net assets, including pipelines, and acreage, you can control a highly diversified fractional working interest ownership; while you are able to sharply reduce the capital risk, or risk of losing your investment. The upside is tremendous, and exciting at today's prices for both oil & natural gas. This is certainly the case when an oil & gas company has already acquired it's assets at a fraction of what they are worth at today's oil & natural gas prices, and especially so when you consider the 'recoverable reserves' in key oil & gas producing areas are now worth millions more than just a year ago. Take advantage of the truth I'm telling you now exisits in certain oil & gas investments being offered by the well positioned companies in the business.
The bottom line is, smart, and flexible money knows we are going to be reliant on oil & gas for many years to come. This is regardless of how much we conserve, or explore for other replacement methods of supplying our increasing energy needs. Other countries will continue to rely on oil & gas as their principal energy source, and we won't be able to stop them. Ethanol replacement adherants are perpetuating a scam, since point blank, it takes more energy, and creates more waste to grow, harvest, and process corn to turn it into ethanol than does oil & gas, by a long shot. Don't 'hook-line & sinker' buy into the alternative energy investments which may never be scalable, or practical enough to replace oil & gas in the foreseeable future. In other words don't buy-in to the emotional nonsense talk of many of the global warming types. Make money when you invest in oil & gas investments, and enjoy filling your gas tank with whatever cars you want to own and drive.
If you would like to explore the possibilities of making 10 or more times on your money as a passive oil & gas working interest investor within the next several years, and want to lower your gross income for tax purposes, while legally writing-off your investments in legitimate oil & gas drilling programs, just let me know by email, or telephone. |
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. |
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