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Investing_In_Oil_And_Gas_Opportunities

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					Title:
Investing In Oil And Gas Opportunities

Word Count:
627

Summary:
Investing in direct participation, or working interest ownership in new
oil & gas prospects being offered by only the very best oil & gas
independents, and broker/dealers is now a pretty common way to beat the
stock market, and just about any other passive investment being offered
to you today...particularly when...but only when...you can do it
correctly...

Cash flow is always king, and making money when oil & natural gas prices
are going up, and to be able to do so while ...


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Article Body:
Investing in direct participation, or working interest ownership in new
oil & gas prospects being offered by only the very best oil & gas
independents, and broker/dealers is now a pretty common way to beat the
stock market, and just about any other passive investment being offered
to you today...particularly when...but only when...you can do it
correctly...

Cash flow is always king, and making money when oil & natural gas prices
are going up, and to be able to do so while not having to sell your
working interest ownership to make a profit, is a chief advantage of
investing in only the most successful of the developmental, and
exploratory oil & gas drilling prospects being offered to private &
industry investors today...

First, you need to be investing with the right companies...only the most
successful...those who are fully aware of all the risks associated with
drilling for oil & gas, and they must know how to control them...for
example...by being aware of the absolute requirement to diversfy, and
spread-out the risk of dry holes, and poorly performing wells...by
picking the very best and most lucrative oil and gas options by using
only the best technology we have, and by working with only the best
drilling companies, and contractors, etc. etc...

Don't fall for quick estimates of establishing cash flowing distributions
from new wells drilled, completed, and placed on line...unless they are
very shallow, and simply offsets to other wells already in production.
You must normally wait at least 90 days before you begin to receive
income from new development activities in a lease hold interest, or Area
of Mutual Interest (AMI)...purchase contracts must be negotiated, and
fine tuning of new wells is typically required before steady revenue can
be established and maintained...6 to 12 months is often needed for cash
flow to begin...this is especially true when drilling deep on shore, or
off shore wells with big commercial reserves...however, the major oil
companies, and large independents are targeting very big recoverable
reserves of both oil & natural gas...and their prime objective is to
'book large reserves'...and maintain revenue streams over a relatively
long period of time after bringing their new wells on line...in other
words they are looking to establish long term cash flow, and value...as
opposed to getting short term 'bragging rights'...it can be pretty easy
to quickly drill a shallow well and find a little production...only to
find these same wells falling-off, or declining rapidly...you then find
you are just 'trading dollars'. rather than discovering big new
commercial quantities of oil & gas...drilling wells with rapidly
depleting reserviors isn't why the more successful oil & gas
professionals are in the business...

You must be 100% sure the tax write-offs are being properly listed as
legitimate tax preference items in the yearly K-1 reports, which are
prepared by the development companies and sent to the IRS each year...you
are then certain of getting all of the legal tax benefits, and be assured
of taking every one of these tax write-offs you are entitiled to receive
to lower your taxable income from all sources...

Compounding your cash flow from oil & gas monthly revenue distributions,
and knowing what your return on investment really is...also...by knowing
internal rates of return, and trusting the companies you do business with
to be well aware of the 'time value of money'...when calculating the
total returns on your money over time...really is the key...this level of
sophistication is only possessed by the top people in our business...if
this sounds interesting, and makes good sense...just give us a call, or
sign-up for the newsletters, and updates we send to people making
inquiries about oil & gas investments.

				
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posted:2/7/2011
language:English
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