What Should You Expect with an Oil Well Investment?

[Posted on February 24th, 2014 by Michael L. F. Slavin]

Many steps are involved when it comes to investing in an oil or gas production well. However, very few of those steps require action on the part of the investor; most are handled by the company managing the investment. U.S. Emerald Energy makes an oil well investment clear-cut and uncomplicated for every investor. Read on to find out how you can get in on the financially rewarding fuel and energy business by working with an experienced, dependable partner like U.S. Emerald Energy.

Laying the Groundwork

The team at U.S. Emerald Energy is proactive about handling all preliminary investigation and exploration that must occur before drilling takes place. We use state-of-the-art techniques to scout out new drilling opportunities, but we only participate in areas with proved, undeveloped petroleum and gas reserves. These proved undeveloped PUD locations are defined as having been demonstrated to contain deposits of oil and gas that have the potential for successful recovery but that have not been fully developed. Drilling only in these areas improves our chances for success and creates the potential for a highly lucrative oil well investment.

Getting Down to Business

After an in-depth investigation has been done, we then draw on the help of our partners. The partners act as the financial backers for specific well drilling projects. If you choose to invest with us, we’ll use all the data we’ve gathered through a unique methodology of project selection to help us pinpoint the ideal prospect. Our operators then use the funds provided by our partners to purchase the needed supplies to prepare the location, contract the drilling company, and complete the well. The intangible drilling costs are also 100% tax deductible for the year of the gas or oil well investment.

Following Up

Providing the financial backing for a project is one of the few steps our partners elect to take. However, many investors also like to participate in other ways. U.S. Emerald Energy is always glad to provide directions to your well, and we’ll even arrange to have you escorted by a member of our staff whenever possible. Investors also have the opportunity to vote on well buy-out arrangements and other major actions that may arise regarding their wells. An investor is not required to participate in these activities, but many do appreciate the chance to take an active role in their respective projects.

Enjoying the Rewards 

After all the work is done and the well is successfully completed, the investor can expect to receive a distribution check each month. These checks will keep rolling in for as long as the well remains productive. Amounts may vary from month to month and are dependent on the volume of the commodity extracted and the current market prices at which it’s sold. By investing in American energy production, the individual investor also gains access to several tax breaks that he or she can make use of regardless of whether the well project itself is successful or not. The cost of the materials used to complete the well is eligible to be depreciated like all other business equipment, and the intangible costs are immediately deductible in the year the investment is made.

To learn about the steps you need to take to gain access to this singular investment opportunity, contact U.S. Emerald Energy today for more information. We’ll be glad to tell you how to get started and answer any other questions you may have.

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