How to Invest in Oil with Low Risk and High Chances of Success

[Posted on September 10 2012 by US Emerald Energy]

If you have been wondering how to invest in oil with a high chance of success with a lower risk, you should consider partnering with us at U.S. Emerald Energy. We are a Better Business Bureau A+ rated company who provides high-quality joint venture partnerships in gas and oil drilling. U.S. Emerald Energy was founded over 20 years ago and is managed by a graduate of West Point, Michael Slavin, who is the president of our company. He founded the company and is extremely involved in all aspects regarding oil and gas exploration, including: exploring prospects, leasing, drilling and production. We also employ a technical staff of experts, who have extensive experience initiating and executing coverage of prospects all the way from start to finish, including prospect evaluation, all aspects of production, and abandonment.

Many people wonder about the possibility of increasing their income by investing in oil drilling, but they aren’t sure how to invest in oil while keeping their risks minimized. The advice given by U.S. Emerald Energy is this: There are no guarantees in oil and gas drilling and any well could end up being a dry hole. However, you should not lose all of your investment if the well is dry. If the well is dry, then the completion money is normally not used and a refund of the unused amount will be paid directly back to you. Lastly, you will also be able to write off the entire invested amount when you file your taxes, minus the already refunded completion cost. Depending on your tax bracket, you may only be risking as little as half of your investment. Furthermore, the industry average is around an 80% success rate on developmental well drilling. The addition of PUD (proved undeveloped) reserves, targeting multiple formations, and using 3D seismic can help to further minimize the risk and significantly increase the success rate. These are the types of wells U.S. Emerald Energy is looking for, and we do not participate in any of the higher risk wildcat projects.

Investing in oil wells is a long-term investment, but that doesn’t mean it takes a long time to make your investment back. Some wells can pay back in as little as the first year or second year of production. If at all possible, U.S. Emerald Energy advises you to consider making investments in more than one well in order to spread your risk. Usually we will show four to five different wells each year. Once a successful well has been completed and put into production, you should receive your first check in 60-90 days. Further distribution checks will include copies of the production statements and will be mailed monthly for as long as the well produces, which could be for many years.

Another exciting aspect about investing with U.S. Emerald Energy is that we have an open door policy and we invite you to visit our company or the well site any time you wish. Visiting a drilling well site is exciting and can be very informational. Usually you will be shown around the rig which allows you to get a better understanding of how the drilling process works. To learn more information about how to invest in oil and gas drilling, feel free to contact us at your convenience so that we can answer any questions you may have.