Oil and Gas’ business strategy is centered on diversification of risks and flexibility. The company is prepared for changes in the market and can quickly change the investment strategy to ensure the best possible return. Besides this, Oil and Gas offers the investors a number of advantages.
The investment will always be on a lawyer’s client account, on a bank account or invested in a project where the legal matters are approved by a lawyer and the product is approved by at least two parties including Oil and Gas.
Portfolio with multiple projects
Oil and Gas will invest in the working interest of multiple projects with a number of validated oil operators with an acceptable record of accomplishment. Only onshore projects will be considered as the risk and costs of drilling and pumping the gas is less than in offshore projects. The maximum drilling depth will be 10.000 feet to keep the risk moderate. The projects will primarily be found in Texas, Oklahoma and the surrounding states, and have a large acreage with a possibility for multiple drillings.
The oil operators must hold on to at least 20% of the working interest of new projects before Oil and Gas will enter a contract. This ensures that the operator takes a part of the risk. In addition, established projects will only be entered if at least one of the other investors has considerable and acknowledged experience with oil extraction.
Oil and Gas secures a diversification of risks and a long-term return by investing in multiple established projects while the oil price is low. Often these can be purchased at a bargain because some have invested too much, and as the drilling have already commenced the start-up costs will be saved. An oil field will produce for 25-40 years with a higher return after the first period and thus the investor can reap the benefit when the oil prices rises. Finally, a yearly return can be expected as the oil fields are proven.
Proven Undeveloped Deposits
One of the ways Oil and Gas ensures a long-term return is to invest in projects with proven undeveloped reserves (PUD). When the oil prices rises, a large return can be expected from established projects as they are expanded and the PUD is extracted. As the expansion happens, new technology can be applied to the projects to extract more oil from the well than expected, which will lead to an even higher return.
Direct investment and administration
The investor invests directly in the project without an agent adding 30-70% to the price. There are no annual provision or administration fees of investment. Oil and Gas charges 10% of the yearly profit to cover administration. Thus, Oil and Gas is interested in earning as much as possible for the investor and has an incentive to choose the right Projects.
Reinvestment of the return
The investor can choose to keep the return in the US and reinvest in new projects. Because of favorable depreciation rules, the return can be invested tax-free for 3-5 years.
The investor can monitor the oil and gas pumped from a given well on a daily basis as oil and gas is highly controlled in the US. The daily extractions are registered on site, by the carriers transporting the oil to the refinery and by the refinery itself. The US authorities inspect these registrations as oil and gas is taxed.
Before a contract is signed, any environmental challenges will be reviewed.Oil and Gas exclusively cooperates with oil operators who considers the environment and follows the necessary precautions