Dear reader, analysing track records when investing in oil & gas drilling programs is a key component you have to consider, and it is probably the most difficult part of the process of doing your due dilligence when trying to find the best opportunities to determine where to put your money in private oil & gas investments. The reason for the difficulty when you are analysing a deal, or company is simple, because, as they say in Hollywood, "You're only as good as your last picture show!"
There are some specific things to find-out, and verify when seeking information about track records, and thereby determine who has the best track record at making investors money in the oil & gas industry. I've been in the industry for 25 consecutive years now, and I have failed at most, if not all of the ways to find oil, or figuring-out how to identify oil & gas companies who can find oil & gas. I've found the ways that a majority of the time don't consistently work, however, I've also found many of the best ways to succeed.
A particular point to remember as a prospective oil & gas investor is don't think in terms of getting rich quick. Instead, think like a sophisticated investor, and first look for the preseveration of your capital, along with getting excellent upside returns, and great tax write-offs. In other words, in my opinion, there is a long term historical misconception still held by many investors and investment advisors, and this is still true today. This misconception, or false belief is, you can make money quick & fast in oil & gas...which is wrong most of the time! You can still get great tax write-offs from the government, which should motivate you to be patient while an oil & gas company completes it's development plan. Plus, you can also make great returns over time when the company you invest with understands the value of 'booking reserves', or establishing 'recoverable reserves', and paying cash flow while they do so. If a company also provides you with liquidity, or has an exit strategy which involves selling it's developed net assets for a good profit, or going public, you can benefit from this plan as well.
Dennis
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