If you want to make money with an investment, you might consider buying an oil well.Investing in or buying an oil well carries some risk.If you want to invest in a company, you need to consult with a licensed financial consultant or broker.You can buy a profitable oil well if you do enough research and work with the right people.
Step 1: You can speak to a financial consultant.
A financial consultant, investment manager, or investment broker will be able to look at your portfolio of assets and help you make an informed decision on how much you should be investing in an oil well.A large investment in an oil well is $100,000 to 1 million dollars.
Step 2: You can find a broker who sells oil wells.
To be a broker, you must be registered with the SEC and a member of the Financial Industry Regulatory Authority.You can check if the broker you are working with is licensed by visiting Brokercheck.A broker with experience in purchasing oil wells will be able to locate you offers and opportunities, as well as walk you through the purchasing process.The SEC regulates industries and businesses.
Step 3: Instead of using a broker, look online for oil well opportunities.
There are oil well projects that need an investment to start.This will give you an idea of what investments are out there.
Step 4: You can find good deals with people you know.
If you have contacts or friends in the oil or gas industry, they may know of oil well offerings that are likely to be profitable.Make sure that you know your contact well, and that they have experience operating or investing in profitable oil wells in the past.They can put you in touch with a broker that can give you more information about buying a profitable well.
Step 5: A Direct Participation Program can be used to make a small investment.
Smaller investments can be made from $5,000 to $100,000USD.You will get partial ownership of the company and its assets if you invest through a DPP.After it produces and sells oil from the well, you will receive a portion of its profits.Discuss your options with your broker.
Step 6: There is a possibility that this is not the case.
An attorney can help you with the investment process and perform due diligence on the company.If you're looking for an attorney that has experience with oil well investments, look online.If you already have an attorney on retainer, ask them to refer you to another attorney with oil well acquisition experience.
Step 7: You should do a full background check on the company.
Search online for SEC filings, news articles, press releases, annual reports, and litigation history.Request access to their data room as well as a sales brochure.If you have retained an attorney, they should be involved in the process so that they can perform due diligence on the company.An oil well's data room will include sensitive, confidential information on the company, which will help inform your investment.
Step 8: The staff runs the well.
The managers of the oil well should have experience working on other successful wells.The team should have qualified and experienced people.If there are any news articles or information on the individual team members, research them online.
Step 9: You can visit the oil well.
It is not always possible to get a full picture of the well that you want to purchase or invest in.You can visit the oil well in person.Take notice of the site and operations at the well.Look for things that are out of place.If their operations are not well-run, consider investing in another well.To make sure there is oil in the area, you may want to get a mineral and geological evaluation of the site.
Step 10: Ask the lead staff questions.
Ask the staff about their past success with previous wells, as well as their production and operation processes.It may be a sign that they are inexperienced and that it is not a good investment.Questions could include things like how long the company has been in business, the number of wells it's currently drilling, and whether they have produced oil in the past.
Step 11: Talk to other people.
Other investors can talk to you about their past returns if the well is well-established.This will let you know how your investment process will be.If there were any stumbling blocks during the investment process, ask them if they have received royalties or returns.
Step 12: You should request proof of funds raised.
Unless you plan on buying the entire oil well, you want to make sure that there are other investors on board.A proof of funds is a document that shows that other investors are on board.
Step 13: Don't be fooled by scam and frauds.
Most of the information you need to know about the oil well is contained in the evaluation you did.There are online offers that dodge or ignore questions.Investing a lot of money into sales or advertising is not necessary for profitable oil wells.Make sure that everything is legal before you invest.Beware of offers that are too good to be true.Aggressive sales tactics are a sign that the well isn't profitable.
Step 14: It is possible to negotiate for a lower purchasing price.
There is a good chance that the deal will be profitable if you make a final evaluation and make sure the price is fair.If you think you can get a better price for the well, or cut costs in any way, then you should put in a lower offer than the asking price.
Step 15: You can speak to your attorney or financial advisor.
Before you make a decision on a company or oil well, have a final conversation with your attorney and financial advisor.During the transaction process, your attorney will help you draft the offer letter.Your financial advisor can give you final advice on the purchase and how it will affect your portfolio.They will speak to the seller about the transaction.
Step 16: Allow the purchase to be finalized.
Once the negotiations are over, you can transfer the funds to the sellers by talking to your attorney or financial advisor.Signing a contract is required to finalize the deal.To receive equity in the well, you have to pay the funds.Your attorney should be present to explain the contract to you.