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:// This e-mail address is being protected from spambots, you need JavaScript enabled to view it

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 This e-mail address is being protected from spambots, you need JavaScript enabled to view it or my direct email address at: This e-mail address is being protected from spambots, you need JavaScript enabled to view it