Sunday, June 8, 2014

Things To Do Of An 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.

The registration requirements are the first things you should inspect before closing an agreement. You must ask carefully the promoters of a deal if they are certified and registered in the state where their business is situated. Once you already have the details, you can call the agency for verification. If your promoter claims that they are exempted with the requirements, you should verify the information and ask on what terms of the exemption they have.

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 should also inquire about the information of the company, its background and their experiences in the industry. It is better if you know their assets, retained earnings, capitalization and liabilities if there is any. Look for an important information about them, especially the funds that will cover all the costs.

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.

A request for any disclosures to a person in selling the lease, relationship of the operator and lessor, cost of the lease and other pertinent information. There should be a secured statement that is an indication when is the start of the drilling. You must insist to see a copy of the contract of the operator and promoter.

The checklist is sometimes a long process and it needs more time to have the result. There is a possibility that you can already invest before receiving the result. It is important, that before giving part of your funds to a deal, you must seek first the advice of a neutral expert to prevent being swindled.

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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