Oil Well Investment Companies
2013 Oil Well Investment
July 27, 2015 - Although our website is more concerned with oil well investment companies we will also have a large number of articles on oil wells and oil well investment in general. We will be adding new information as it is available so be sure and bookmark us.
Oil Well Investment Companies
There are now and always have been a number of oil well investment companies that need capital to construct new wells on proven sites or rework out of date units. The companies who specialize in this type of operation are considered conservative in the oil field industry. There are a number of reasons why.
There are two primary types of companies who offer partnerships available for investment in oil wells. One of these is the exploratory type of operation and the other one is the developmental type of operation.
The exploratory companies deal more in drilling wells in unproven areas hoping to be the first to make a strike. The return can be astronomical if a strike is made, but the risks can be high as well. A small number of dry holes can wipe an individual's whole investment out.
On the other hand, developmental companies specialize in acquiring leases on the same property oil has already been found. In fact, in most cases there are wells still standing on the property when they acquire the lease. This greatly lessens the chance of dry holes as the new wells will be drilled next to the old wells that were once producing.
Thanks to advances in modern drilling equipment and techniques, an oil field with a number of shut down wells can provide a significant investment opportunity. If records show the wells were producing even a small amount oil with old and out dated equipment, there is a great possibility with new modern equipment and drilling techniques they could be extremely profitable.
There are many instances where new wells are drilled in the same holes as the old wells which can even broaden the chance for a successful venture. Of course first the well must be analyzed to determine if this is economically feasible. In some cases it may be more economical to just drill a new well adjacent to the old one.
Statistics offer a very compelling reason for dealing with oil well investment companies who specialize in this type of operation. It appears that in most cases due to old equipment and poor drilling techniques, a very large percentage of the oil is left in the ground. This can mean substantial returns for the savvy investor who is fortune enough to purchase a partnership with a company that has acquired a lease on the right property.
Due to the very generous tax deductions allowed by the government and extremely low interest rates being paid by financial institutions, this could be the perfect time to invest in an oil well venture with an established and conservative company.
June 15, 2015 - Most oil well investments are as limited partners. If you are not sure what a limited partner is be sure and check out our article on oil partnerships. To invest with oil well investment companies remember you have to be an accredited investor.
June 22, 2015 - As stated above you must be an accredited investor to be a partner in an oil well venture. We have information on our website explaining what an accredited investor is for anyone who is not sure. Just browse down the article list and click on the one that says 'accredited investors'.
July 25, 1015 - There has been a lot of successful drilling going on in recent years in oil producing areas that were once considered no longer worth drilling. This is because there is a number of new drilling methods such as horizonal drilling that can get to oil that was once not so easy to attain. The good thing about drilling in these areas is it is a lot cheaper than exploring for oil in new areas and drilling where you are not for certain there is oil. Sometimes oil well investment companies can even drill down one of the same holes and have a very profitable operation.
July 27, 2015 - Though investing with oil well investment companies in the form of a partnership in one of their ventures can be very rewarding, you should do a lot of research on the company and this type of investment if you have never done it before. Like any other investment there are companies with poor success records and companies with good success records. You should also understand that with this type of venture there is a chance you could lose your entire capital even though you can write a large portion of it off if this should happen.