With many oil and gas projects, large minimum capital contributions are typically required—usually $50,000 or more. This creates a barrier to entry for many investors, and excludes anyone without a high net worth.
EnergyFunders has lowers the minimum investment level to only $5,000 per project. It’s a investment into the project where you’re an equity partner—not a tiny part of a Master Limited Partnership, or as a shareholder in an exploration and production (E&P) company. This lowers your exposure to corporate overhead and gives you more peace of mind as an investor.
Investment in the right private or public E&P companies can be profitable if you do enough research and the company provides enough information. However, they carry additional risks compared to direct investment in a single project.
With an investment in a large E&P company, you’re exposed to every oil and gas well or lease the company owns. If there are more profitable instead of losing projects, you don’t have to worry. However, if a company’s wildcatting efforts result in enough dry holes and losses… it could lower net profits, the stock price and reduce any dividend the company pays to stockholders.
Compare this company-wide risk exposure to the smaller, more contained risk of a single oil or gas project. That’s why we’ve made it easier for you to invest in this critical part of our nation’s economy.
To look over our portfolio of carefully-vetted oil and gas projects, please click the button below.