0 likes | 27 Views
CEFM is an oil and natural gas investment company that offers capital opportunities to invest in oil and natural gas wells at the same time. There is no risk to the investors as they can count on getting their taxes deducted.
E N D
HOW TO INVEST IN OIL & NATURAL GAS CEFM as Managing General Partner creates and administers Limited Partnerships for investments into oil and naturalgas opportunities.
GUIDING PRINCIPLES FOR SMALL PRODUCER PROFITABILITY Our desire is to provide invaluable insight from our experience so that the Small Producer will fully understand that it is a quite complex endeavor to be a direct participant in oil and natural gas wells. We wish to impress on the reader how essential it is that any well investor not only implements a structured business plan that is both consistent and disciplined, but also that the investor recognizes the necessity of taking a long-term view. Moreover, there needs to be a realistic expectation of what can be achieved by drilling for oil and natural gas.
THE OPTIMUM STRATEGY When you hear of a $7.5 million well producing 11,000 mcf of gas per day plus 1100 barrels of oil per day (17,600bcfe), or $110,000 gross earnings per day @$3.00/mcf and $70/BO, you ask yourself “why can’t I be so lucky to get on a producer like that?” The fact is most of us were drawn to this business from hearing stories of blockbuster wells like this. All of us have dreams of hitting it big despite huge risks and cashing in with fabulous returns.
INDUSTRY KNOWLEDGE AND EXPERIENCE We believe that our knowledge of the industry and experience uniquely qualify us to introduce you to the potential rewards of becoming a Small Producer. We hope to facilitate your understanding of our investment strategy, so you can similarly achieve rewarding results that can be replicated year after year.
STRATEGIC PLANNING Therefore, an important part of the stratagem to becoming a successful oil and gas Small Producer is this; anticipate by planning accordingly that more than likely half the wells you drill are going to be non-commercial, and that the other half that are commercial will yield widely varying rates of return from marginal to superlative. To compensate for these facts, one must participate in as many wells as possible while being very selective relative to economic problems and potentials of the prospect and the reputation or track record of the Operator.
PROSPECT SELECTION PROCESS The “prospect selection process” is another crucial element of a successful well, or prospect investment program. As the Small Producer progressively improves on his completion rates, production rates, and the ultimate accumulation of recoverable reserves through successive “wins”, a snowballing effect takes affect. Correspondingly, one’s risks progressively diminish through this process. The ability to select and secure better and better prospects also improves as this cycle of success compounds.
CONTACT US! • www.cefmoilandgasinvestments.com