Why Invest in Drilling Deep Hole Wells?
Why exactly is EnergyFunders investing in drilling deep oil and gas wells? We’ve found that through investing in ultra-deep wells, you can find a risk to reward that is unparalleled in investing.
After you account for the tax benefits that dramatically reduce your risked capital dollars with the ability to diversify your capital into small bets across more projects, it only takes a few big discovery winners to make us for any dry holes or moderate producers.
Deep wells require more capital and thus reduce the number of operators that can afford to play in the space. It also means that more caution and due diligence goes into these wells.
Reed and Casey break down in this episode why you should have high risk – high reward drilling prospects in your portfolio and how EnergyFunders partners with exclusive operators in this space.
Our best well to date was drilled to 14,000′ and was a massive gas discovery. We doubled down on this operator and strategy in 2019 with the funding of our two deepest wells – 17,000′ and 21,000′. Investors showed that they had an appetite for the investment – EF VC27 was $525,000 raise for us.
What if I wanted to learn more about deep hole drilling wells?
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