2. What to Look for in Legitimate Oil and Gas
Drilling Projects
• Obtain notarized copy of the lease where the
operator plans to drill with insurance.
• Request a copy of operators insurance.
• Make sure the oil investment is with the drilling
operator.
• Request an AFE to see what the costs are.
• Never buy units. Only buy working interest or royalty.
• Get investor references. If they are making
money, the better the chances for you.
• Only do business with operators listed with Dunn &
Bradstreet who can also provide references.
3. What to Avoid When Investing in Oil and Crude
Oil
• Watch out for brokers and dealers.
• Never invest if the net revenue interest is less than
70% to the 100% working interest.
• Use caution investing in oil with an L.L.C. designed
just for the crude oil investing offering.
• Never invest if the operator distributes revenue. It
should come directly from the purchaser.
• Stay away from salespeople who refuse to give you
time to think about it.
4. More Tips on How to Invest in Oil:
• Get a consultation from a real operator who is
willing to educate you about how to invest in oil.
• Invest in oil using small amounts of money into
several deals versus a larger amount into one deal.
• Always speak directly to one of the principals
and/or partners of the operator.
• Calculate the price of oil at 20% less than it shows
on West Texas Intermediate.
• Contact us if you are trying to figure out how to
invest in oil or any other crude oil investing tips.