Top 5 Mistakes To Avoid When Investing In A Oil And Gas Project, Royalties, Or Ownership Deals

Today we’re covering the top 3 mistakes you must avoid when making an investment in an oil & gas property.

This does not cover any investment tips for investing in a publicly traded petroleum company, oil & gas stocks, or any form of financial securities.

The tips are for individuals looking to invest in any properties, mineral or royalty rights, or any form of investment that involves oil & gas ownership.

Advice To Increase Your Chances Of Succeeding In A Oil & Gas Investment

1. Never invest money in an oil & gas project that you can’t afford to lose

Oil & gas projects can be extremely risky, always keep your investment strategy in line with the possibility that you may lose your capital. No matter how good things can look on paper, the reality of the payout will always be different.

2. Never invest in a project where you have a start up operator

Don’t place your faith in an operator that has no experience, make sure they have good and up to date references to back up their performance record. An investment with an oil & gas operator that has never done a project before adds an incredible amount of risk on your capital.

3. Never invest in a deal where the owner or operator has none of their own money at risk within the project

Make sure the oil & gas owners or operators are putting up their own share within the investment. Your chances of getting a good return go up significantly when their money is at risk in the same way yours is.

4. Do not risk your money without getting a technical evaluation done or at the very least an expert opinion

Investment drilling deals can be extremely complicated, you are increasing your chances of losing all your money if you do not have the entire deal analyzed by an oil & gas evaluation expert.

5. Ask the operator lots of questions to ensure they have the logistical aspects worked out

This will probably require some third party expert help in gathering the right questions, but it will validate the experience and knowledge of the operator and reduce your overall risk.

I hope you found this video helpful and remember to call me, Kurt Mire, if you need any help in evaluating your next oil & gas investment.


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