Checklists For Oil And Gas Investor

By Kenya Campos


Nowadays, warnings are already given for oil and gas investment scams, since the operation is still alive and well. The state securities regulators have already advised those potential investors not to be scared to ask questions about investment opportunities. A potential oil and gas investor Brookshire Salt Dome must consider the oil producing companies that are already existing for many years and listed on the stock exchange.

You can also minimize the chance to be a victim of swindlers that are rampant in the society today. You must be careful with your decisions, especially if you are already pressured. There are some list of steps that you need to follow before involving yourself in investing funds. Proper knowledge will keep you away from being deceived.

Before you invest your money, ask first their registration requirements. A legal operation must be registered in the state securities in the location where the business is operating. Once you already receive the information about the, contact the agency to check if the details you received are true. If they claim that they have terms of exemptions, you must ask on which area they are exempted to be sure.

If the agreement is legal, salespeople should answer all the questions that are given to them. They should not hesitate to answer, like the background of their company and how long do they exist in the industry in the field of oil and gas business. It is also important to know what are their compensations when they have made a deal. Contact the securities regulators in the state to verify if there are no rules and policies that are violated with the salesperson.

You must inquire the background of the company and their experience in the industry. Seek any information about their history, assets, retained earnings and capitalization. Find an exact information about their funds to cover all the costs. You should know if they are supported by the service of internal revenue.

You must be sure that the funds raised are in a separate account until needed and it cannot be mixed with the other funds. Be certain with the funds that are not used for other purposes. You must ask about how much they would spend for the cost of every fractional interest. You must know about the cost of the salaries, advertising, sales and commissions to the company. Ask for any documents that will be provided once the investment was made.

Requesting a disclosure about the cost of lease, relationship of operator and lessor and selling the lease must be given to you. There is also a safe statement that indicates the beginning of a drilling. You should also have a copy of the contract between the operator and the salesperson.

The checklist given to the investors are quite long and perhaps you already invested your money before the result of your consultation. Thus, before investing your money, you should consult to a neutral expert to seek for their advice and suggestions before you commit your funds to any deal and to avoid scams.

The state securities regulators are also helpful for any information you need. They are the person that will help protect you from any investment scams in the society. If you seek their help, they will immediately give the details you needed.




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