'Why You Should Avoid Most Promoters in Oil & Gas Investing'

Dear Reader, If you want your best chance to make money investing in oil & gas drilling programs, take note about a few things before investing while you read this blog article.

I recently talked with a promoter who told me how he could take my independent oil company to the next level, and raise more money for our company. This promoter's idea was to use 'fronters' or phone callers to qualify prospective investors, after which a 'closer' would then make the sale. After talking with the promoter or middleman for awhile on the phone, it became apparent to me that his primary concern was figuring out how much he could 'load' the investment, and thereby make a large profit for himself. He wanted 30% off the top, or 30% of the gross funds raised.

There are promotional companies offering oil & gas investment programs with huge promotes on dollars raised from investors...in other words, a large part of the money raised will never get into the oil & gas investment program designed to make you money, or make it possible for a decent profit to be paid you on your investment. Reputable operators, and small independent oil companies will not want to do business with an un-licensed salesperson, or with un-registered broker/dealers who charge excessive promotes. Under current securities laws the maximum remuneration that a B/D can charge is 10%, and they can take 3% for syndication, legal, accounting, and other administrative costs, and fees. However, an issuer or principal of an oil & gas company can talk about, and present his own company's products, but cannot collect a commission for his efforts. Commissions can only be paid to licensed broker/dealers, and licensed sales persons.

Bottomline, and this is incredible, the promoter responder to my website was simply trying to get me to fund him for his 'calling room', more aptly described as a 'boiler room' using un-licensed salespeople to sell oil & gas, or as a third party, or non-operator he would assume the position of a middle man who would then be carving-out a big piece of the potential profit that could ultimately be paid to an investor in a successful program.

http://www.oilandgasinvesting.com/

You must know how to avoid the un-licensed salespeople, or non licensed broker/dealers, and promoters, or at the very least be able to determine what their promote is...because your success at investing in the 'right' oil & gas investments depends on it...email, or call me for information about how to determine the various ways you can identify the best companies to consider doing business. You want to be able to find those companies who are approaching the oil & gas business with the goal of enabling investors the opportunity to make the highest returns possible given the intrinsic risks in our industry.

Another thing to remember about the oil & gas industry. There are many individuals, and companies working very hard to find oil & gas, and make investors money. Oil & gas companies need to be flexibile, and be able to move quickly to take advantage of opportunities they discover while developing oil & gas properties. Few guarantees can be made about performance...however, effort and persistance, and committment, along with years of experience do increase ones chances of making money in oil & gas.

In any deal as Yogi Berra would say, "It ain't over, until it's over!" So the wise approach is to let the companies you are investing with finish whatever development plans they have before passing judgement on their ultimate success or failure in an endeavor. Don't rely on third party heresay or someones myopic point of view, or 'full of holes' analysis based on an 'axe grinder's view' of any oil deal. I once told a hippy in 1970 while at college..."you only criticize, and then asked him why? His answer was, "I reserve the right to criticize, without offering a solution!" Wonderful ain't it? Is this still where we are in the US today? "Don't confuse me with the facts, or evidence, as my mind's already made-up?"

http://www.americanenergy@gmail.com

If you cannot talk directly with management, and verify ownership of leases, or acreage controlled by an oil company, or you don't see legal descriptions in the offering memorandum you receive, these are additional signs you'll want to note, that something 'stinks in the state of Denmark!'.

P.S. By the way, if you see personal attacks made on specific companies, or individuals in the oil & gas industry, such as those you see on blog sites, ask for the name of the blogger, and for their address, phone number, and for actual evidence supporting their compliant, or rantings. Look beneath the surface, and make sure you don't base your decision on inaccurate information, or old news which is no longer true. Also, don't base your opinion, or decisions you make on any third party heresay without knowing their agenda which isn't being disclosed. Remember, there are always two sides to any story. Dennis