Breitling Oil and Gas Morning Podcast #57 April 13th, 2012

Thinking about investing in oil and gas? Here are some tips:


  • Find out the operator’s success rate: if you’re thinking of investing in a new drilling project, compare the operator’s number of wells drilled to the number of wells producing; also compare the company’s performance to the county and state averages
  • Invest only in direct working interest –  If you invest in oil and gas through working interest you are sure you get your tax deductions and you will receive a deeded title to your interest in that well. Partnerships and joint ventures should be looked at with skepticism
  • Look at the operator’s track record: don’t focus solely on the project you’re interested in investing in—look at the success rates of several of the operator’s last projects
  • Seek innovation: the most successful operators are constantly looking for better, more economical ways to find and extract natural resources; find out what types of investments an operator is making in technology and R/D


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