[Posted on August 29th, 2013 by Michael L. F. Slavin]
While most individuals have a superficial familiarity with the effort and resources required to drill an oil or gas well, the details of the process are not always clear to someone who has not worked in the business, although participating in oil and gas investments is a fairly straightforward process. U.S. Emerald Energy, an oil and gas company with decades of experience in the oil and gas business; makes oil and gas well investing simple and easy to understand through the use of direct partnership joint venture arrangements.
How Does A Direct Partnership Work?
A direct partnership is a unique arrangement that allows one or more investors to partner with an oil and gas company for the mutual benefit of all parties involved. Under a direct partnership agreement with U.S. Emerald Energy, investors supply the funds needed to drill and complete a well, and U.S. Emerald Energy supplies the work. A direct partnership arrangement for oil and gas investments can be made with a single investor or with multiple investors, each of whom contributes a portion of the necessary funds. After completion of the well, U.S. Emerald Energy and the investor or investors in the partnership then share in the profits of a productive well.
What Is Required Of An Investor?
Investing in oil and gas wells via a direct partnership allows an individual investor to participate in the process to a certain extent. The only point at which an investor must become actively involved is when the initial investment is made. After investing, the investor also has the option to visit the well at any point during or after construction. An investor may also participate in other ways such as voting on decisions involving the well in which he or she has a stake. Although many investors do take an active interest in the well drilled using their funds, no investor is required to participate in any way after making the initial investment. An investor who does not wish to participate further is only required to cash or deposit the dividend checks generated from the proceeds of the well.
Who Is Responsible For Managing Construction And Operation?
Direct partnership agreements with U.S. Emerald Energy are structured in such a way that U.S. Emerald Energy and their operator take responsibility for day-to-day management of the project. The investor simply provides the necessary funds to cover the initial construction and development costs of the well. Using two decades of expertise in the oil and gas industry, U.S. Emerald Energy performs all the preliminary research necessary and chooses what they believe to be the best projects to drill. U.S. Emerald Energy also works with an operator who acquires the supplies needed to drill and complete the well. The operator contracts out the actual drilling, and takes care of the completion operations. Any necessary maintenance and repairs to the well are also handled by the operator after consulting with U.S. Emerald Energy and the other industry partners in the well.
U.S. Emerald Energy’s unique direct partnership arrangements have allowed a multitude of investors to benefit from the often lucrative field of oil and gas production. Owned by Michael L. F. Slavin, U. S. Emerald Energy has been in the oil and gas business since 1992 and has built a stellar reputation within the industry, as well as with the Better Business Bureau. If you are interested in finding out more about investing in oil and gas wells through a direct partnership, contact U.S. Emerald Energy today.