Comments on: is investing in oil n gas exploration in this country a good investment the co. has a good track record? http://askalandman.com/is-investing-in-oil-n-gas-exploration-in-this-country-a-good-investment-the-co-has-a-good-track-record.htm Questions and Answers Sun, 20 May 2012 00:01:09 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Joel S http://askalandman.com/is-investing-in-oil-n-gas-exploration-in-this-country-a-good-investment-the-co-has-a-good-track-record.htm/comment-page-1#comment-9158 Joel S Mon, 05 Jul 2010 08:20:10 +0000 http://askalandman.com/is-investing-in-oil-n-gas-exploration-in-this-country-a-good-investment-the-co-has-a-good-track-record.htm#comment-9158 My question on this would be that if the wells are coming up dry, how are they getting money back into their company to limit your loss? They may have continued income from other operations but would be an important point. There are also other choices with stocks such as PWE, USO where you are investing into energy investment and exploration as well. My question on this would be that if the wells are coming up dry, how are they getting money back into their company to limit your loss? They may have continued income from other operations but would be an important point. There are also other choices with stocks such as PWE, USO where you are investing into energy investment and exploration as well.

]]> By: muncie birder http://askalandman.com/is-investing-in-oil-n-gas-exploration-in-this-country-a-good-investment-the-co-has-a-good-track-record.htm/comment-page-1#comment-9159 muncie birder Mon, 05 Jul 2010 08:20:10 +0000 http://askalandman.com/is-investing-in-oil-n-gas-exploration-in-this-country-a-good-investment-the-co-has-a-good-track-record.htm#comment-9159 This type of investment is not for the unitiated. There is a great deal of risk and in many cases in the past people have lost a lot of money on such endevers. One thing that you need to be aware of is that drilling cost have skyrocketed in the past 5 years. Another thing is that 2000 acres is not a very large exploration area, about 3.1 sq miles. 10 wells at one million each to drill means a total cost of 10 million to develop the wells at least. Another consideration is the terms of the lease, in other words what % does the leasor receive. A lot of variables. Does the oil company have a record? What does their balance sheet look like? How long have they been in business? How have their other programs performed? This type of investment is not for the unitiated. There is a great deal of risk and in many cases in the past people have lost a lot of money on such endevers. One thing that you need to be aware of is that drilling cost have skyrocketed in the past 5 years. Another thing is that 2000 acres is not a very large exploration area, about 3.1 sq miles. 10 wells at one million each to drill means a total cost of 10 million to develop the wells at least. Another consideration is the terms of the lease, in other words what % does the leasor receive.

A lot of variables. Does the oil company have a record? What does their balance sheet look like? How long have they been in business?

How have their other programs performed?

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