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Oil and Gas Investments

Discussion in 'Uncategorized Threads' started by coloradoshooter25, Nov 2, 2007.

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  1. coloradoshooter25

    coloradoshooter25 TS Member

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    I have had several of my shooting buddies contacted by Oil and Gas Companies in the last few weeks.

    This is undoubtedly due to almost $100/barrel oil. They have a lot of questions on deals that have been pitched to them. Like any business, there are good deals and bad ones, but the Oil and Gas Industry has black eye for the most part.

    I wanted to put a thread up on TS.com so people would have a fellow shooter that could talk to them about the pitfalls of the industry as well as its huge up-side if doing business with a solid company.

    I look forward to hearing for anyone interested in information. I am a partner in a privately held Exploration and Production company, and would be happy to answer anyone's questions if you are considering investing in Oil and Gas.

    Chris
     
  2. halfmile

    halfmile Well-Known Member

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    They have to be coming out of the woodwork. I had one tell me he had the lease right next door to the "Cherokee Rose" jpurportedly one of the best producing wells ever.

    The were going to drill a slanting hole and tajp right in to the same deposit, and we were all going to be millionaires. All I had to do was send him 20 Thousand right away.

    Peed my pants laughing and broke the phone when it dropped on the floor.

    HM
     
  3. coloradoshooter25

    coloradoshooter25 TS Member

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    HM,

    that is the kinda stuff my friends have been getting too. i actually sent you an email earlier today as it pertains to another thread on investments on here.

    if you want to give me a call or a direct email, i'm happy to talk to about what a real project should look and sound like.

    your right, the woodwork is going to keep crawling with guys like that because when the price goes up, so do the guys trying to rip people off.

    the fact is, there is a lot of money to be made in the Oil and Gas business right now, one just needs to make sure the company they are putting money with is on the up and up.

    look forward to hearing from all 719-433-4488

    chris
     
  4. Tripod

    Tripod Well-Known Member

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    Iowa man!!
    I have been investing for the last few years with good returns. As with anything if you stick to the companies that have been in business for a long time you will at least not be scammed.
     
  5. kenf

    kenf Active Member

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    I'm a petroleum geologist in PA, working for a privately funded company. Some 'investor' companies make there money up front to continue operations, so they don't have to worry about great returns to their investors. Herein lies one of the black eye's for the industry. People can and do get raked over on leasing their O&G rights to production companies, or to leasing agents who sell the lease to the highest bidder. Do your research.

    Ken
     
  6. over the hill

    over the hill Active Member

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    Ken I heard years ago that it is the wildcatters who drill most of the new wells and take the risk. Is this still true? Are we drilling or is it to easy to import crude?

    How much of a problem are the EPA wachos? Thanks Gerald
     
  7. wm rike

    wm rike Member

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    I work in the oil and gas industry. Like everything else, it is more complicated than people imagine. Good advice for any investing is to only put your money in ventures you have researched and understand. I'm confortable in oil and gas, but that's where I live and work. Conversely, I would run the other way if someone knocked on my door with what they represented as a hot deal in micro-tech or a fast food franchise.
     
  8. almost unemployed

    almost unemployed TS Member

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    This is a good publication for the subject. A little pricey for individual usage, but check your local library. Also, stock brokers may have a copy you can look at before subscribing.
     
  9. Hipshot 3

    Hipshot 3 TS Member

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    All I can say is be VERY careful before investing in the oil market.....remember what happened several years ago! Got burned....never again!
     
  10. kenf

    kenf Active Member

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    There isn't a whole lot of wildcatting going on anymore. Most of Pennsylvania is drilled up, at least in the shallow down to 3500-4000 feet. It is a game of finding spots to drill wells next to good wells. There has been a lot of activity to drill deeper shale wells across western Pennsylvania in the hopes of finding the next big reserve. However, population density, lack of information and equipment, plus unwillingness to take risk are making the going slow.

    By the way, we mostly drill natural gas wells here anymore. There is some oil activity up North because 100 a barrel oil makes it economical to fire up old 5 barrel a day wells.

    As far as regulation goes, most of the regulatory agencies are swamped with paperwork. There was a big to do in the Allegheny National Forest with a producer who couldn't get the required clearances to drill from the Feds due to understaffing and started anyways to stay on schedule. They got shut down for a few days, but eventually resumed. The fallout isn't done over that one yet. If you are wondering why we can drill on Federal land, in Pennsylvania at least, minerals can be severed from the surface, so the Federal gov't doesn't always own the oil and gas underneath the forest land they bought.
     
  11. halfmile

    halfmile Well-Known Member

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    Well, Gordy, let's say we want to keep it in the bank. Getting caught with our pants down, like Hitler when he lost his sources, would not be cool.

    But there was a benefit. German scientists under heavy pressure developed the first synthetic oils.

    Let's burn up the Muslim oil and save ours for later.

    HM
     
  12. wm rike

    wm rike Member

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    Gordy,

    You're the victem of too much network news. With regard to caped (capped?) wells, nobody in the industry has any idea what Dan Rather and his kind were talking about. Wells can be plugged and abandoned, or they can be shut in, but this "capped" thing has the collective industry baffled.

    Plugging is a permanent abandonment of the well because it's production has declined to a point where there is no way it could be economic. Shut-in wells are ones taken out of operation because the current economics do not pay the day-to-day overhead.

    In today's market, any well that can produce oil will/should be in production. Similarly, gas wells should be in production. The exception is the Rocky Mtn region where there is an inadequate pipeline system. The existing pipelines are full and cannot purchase any more gas from the well operators. It's supply and demand, so the pipelines pay a pittance out there to discourage over production. Some wells may be shut-in for that reason.

    As for Halfmile's suggestion that we are banking it so we don't get caught with our pants down, our pants have been pulled down around our ankles for the past 30 years. We import 2/3 of our oil. Well and good as long as we can import the stuff, but keep in mind that a 2% change in supply is monumental. For those of you that can remember the chaos (quarter mile gas lines with fights and knifings) that resulted from the Arab oil embargo in the early 1970s, understand that our day-to-day shortfall was only 2-3%. Desert Storm was undertaken because a madman was threatening to corner 24% of the world's oil production.

    We digress. The original thread here was about oil and gas investments. Oil and gas opportunities that are offered to the civilian market carry some sort of a front-end load. Beyond that there is the geologic framework on which the offering is based, and this will not be understood by the laymen. Lastly, there are good operators and bad, and the non-industry investor is taking a real shot in the dark if he thinks he can dope this out. I tell people that if they think oil and gas is hot and the oil company profits are high, take a front row seat and buy stock in Exxon.
     
  13. Bruce Specht

    Bruce Specht Well-Known Member

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    What you want to put your money into is a company that can find and supply water to parts of the country
     
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