Oil Investing

3 Things to Look for in an Oil Well Investment Opportunity

As oil prices continue to stay above $50 a barrel and oil & gas pro’s feel the worst is behind us. More and more Oil and gas investment opportunities are showing up. A quick interview with Derrick Hale, VP of Business Development for EnergyFunders say’s project deal flow has picked up x 3 since last year.

 

That being said, it’s more important now than ever to have a good due diligence process in order to avoid the inexperienced, the Crooks and the Promoters.

Here are 3 things to look for in an Oil and Gas Investment opportunity:

  1. Bet on the Jockey, not just the Horse: We have all heard it before, but it really does matter to whom you do business with. The oil and gas business is tough enough already, now add in someone that lacks experience. This is a recipe for a lost investment.
  2. Data, Data and More Data: Data is critical for an experienced Reservoir Engineer to evaluate logs, offsetting production, decline curves and much more to ensure you have a decent opportunity to make oil. Make sure that the people you are doing business with provide good data and it is reviewed by a first class third party.
  3. Avoid Promoted Projects:  There’s just not enough money in these projects at $50 oil for a Promoter to take 10%-15% in a fee upfront. At today’s new normal prices, investor should be aware that Promoters (those that make fees for raising money) should be making much less. Be sure and ask questions like, “how are you making money?” Read more about True Partnerships

You can always check out our Platform at www.EnergyFunders.com to see highly vetted oil and gas investment opportunities at lower investment amounts.  We are Partners, Not Promoters –

Energy Investing