14 May When Oil Well Investments Go Well
It’s true when they say that anything can go wrong (or right) in the oil patch, so it’s good to talk about oil well investments that go well. It’s a tough business, which reinforces the need to do business with experienced, tested professionals who have earned a formidable track record of success.
The pros will tell you that even the best operators have dry holes, can experience bad service issues, and complete marginal producers.
They say a good winning percentage in oil well investing is 65-70%. No one hits 100%, but a 65% success ratio can make investors a lot of term residual income.
Here are two recent projects recently funded on the EnergyFunders platform that are each having success.
#1. The Hagler JP & Fern Well #1 is the first well of three to be drilled and completed on this lease as part of the funded package. The experienced operator drilled into an older field to target a limestone formation that had been left behind for decades. Believe it or not, there are millions of barrels of oil in Texas and surrounding states that were overlooked or forgotten since the 50’s. We invest in operators exploiting older oil fields with good to excellent reserves left behind.
The #1 Well confirmed the thickness of the limestone and the completion technique used to finish the well has been successful. There are two more wells to be drilled in May, but so far the production number from the #1 well already generates the mid-case economic projections offered to investors. Time will tell if this is as good a well as it seems to be (it always takes time to accurately evaluate the quality of a well after completion), but so far this is great news for participating investors.
#2. The Bonnie Davis Well #1 is the first of eight wells to be drilled. The development of the BD Well #1, like any good story, was full of ups and downs. The operator drilled down to over 3000′ to find a rare formation, which trends in the area; the well actually hit five different potentially productive oil zones–two more than expected. The investors put together more money to complete the deeper and additional zones. While the deepest zone did not successfully complete; however, the good news is that there are four more formations that had good oil shows.
The next day, the operator–with many years of experience in the area–went up the hole and completed the next zone. So far, the oil swab test shows good oil shows from this zone, and the well will be put on a pump jack in the next ten days to initiate consistent production.
Oil well investments can be a lot of fun. Every investment holds the opportunity to make outsize profits and potentially generate monthly or quarterly “mailbox money” for years. They can have their ups and downs, and like any investment, they have some measure of risk. That’s why we provide investors the ability to diversify across many projects by investing as little as $5,000 in a project. We also bring oil well investments (and at times, gas well investments) to the EnergyFunders platform every six weeks. This way, by the end of the year, our investors can have a good portfolio of different types of Oil Well investments and Natural Gas investments. Soon enough, they’ll also have access to Oilfield Service Companies investments, Salt Water Disposal Well investments, Innovative Energy Technology Company investments, and Clean Energy Technology investments.
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