A few months ago, natural gas players were living "high on the hog". Many companies heavy in natural gas like Chesapeake killed it in 2022! News was good all around and production was at peaks just recently in Texas. I posted on LinkedIn and warned people not to be swayed by...
As a lifelong fisherman from Alaska, I’ve learned 2 basic rules that will help you fill the freezer for the winter. Rule #1: Go to where the people are Rule #2: Go to where the people aren’t Sounds like confusing (if not contradicting) advise, right? Well, here’s how...
If you've read my piece on how we approach natural gas lease purchase and development evaluation, you would read that I always "begin at the end". Simply, I research the local gas purchasers and try to see where their demand for supplying natural gas...
We get this question from new and even seasoned investors. And it's a good question. Every deal can have a unique set of risks, but the 2 of the big ones are: 1 . A drilled or re-entered well is simply not economical to produce in...
DTC – Never seen this acronym before? It means "Drilling, Testing, and Completion ."I always use them in tandem because it's an entire process. Most newcomers don't fully understand that most success in prospecting is not in the Drilling and Testing; it's in the Completion. Based...
This is one of the most common questions we receive from people new to oil and gas investing. Below is a breakdown of the term. Working Interest (W.I.): This refers to the amount of "shares" measured by a percentage point in a lease and/or drilling/re-entry program....
The best place to start is by defining the 2 terms. After completing some research, there is no standard definition that either oil companies or even governmental entities can wholly accept. From a technology standpoint, it's even more ambiguous as methodologies for exploration, drilling, and...
When considering investing in E&P oil ventures, it is understood that it has global demand. The typical evaluation process goes from geology; reserve and production estimates, and cost to drill, test, complete (DTC); taxes and royalties; then lifting costs. Who picks up the oil is...
INFORMATIONAL ONLY - PLEASE CONTACT YOUR ACCOUNTING PROFESSIONAL FOR YOUR CONSIDERATION GENERAL CONSIDERATIONS CONGRESS AND OTHER GOVERNMENT ENTITIES HAVE CREATED MANY TAX INCENTIVES TO MAKE PARTICIPATION IN OIL AND GAS VENTURES ONE OF BEST TAX ADVANTAGED INVESTMENTS AVAIABLE. THESE INCENTIVES WERE IMPLEMENTED TO STIMULATE THE ECONOMY AND...