Oil Wells for Investment

For any of you who has capital you use for speculating you may want to check out investing as a partner in an oil well with an established company with a good track record. For many this may seem far fetched but where I live in Texas it is quiet common. There are great tax advantages whether you hit oil or not and if the company hits oil you can have royalties coming in for many years. However, this type of investment is for people with money enough to take the loss if oil is not stuck, so don't go jumping in if you are not in that category. Just thought I would throw in something different. Here is a good article on the subject. The site is just for information, they are not trying to get you to invest.

Who owns this site, Charlotte? It looks just like some of the other sites you have posted links to with no information about the owners. I am suspicious of any site that has no information about who owns it, who runs it, etc.

I agree, Yonuh.

IF - and I mean IF - I were going to start looking into this sort of investment, I'd look to a site like this one from the SEC first.

I already have shares in gas wells but only by happenstance.
When I was young, a gas well company drilled several wells throughout my old neighborhood. Daddy was all gaga over the idea; they had him believing those drillings were Heaven-sent, in lieu of money trees. Not! They drilled 'em, then stoppped using 'em. Why? I haven't a clue. But from my personal experience gas wells are a crock of crackers! Don't know anything about oil wells.

My former sister in law does. She is from Midland, Texas, and her granddaddy was in business with Bush the first.

She's an attorney and works for her mother's firm, which I believe is called Redfern Enterprises, Inc.

I haev no idea what she does these days, but back when she and my brother were married, her job as to research non-producing wells like yours, Jabber, and buy them up if her research showed that they MIGHT be able to produce.

Don't know whether fracking would be involved in getting them to produce, but the concept as I understood it was that as gas and oil become harder to find, these smaller wells might prove more valuable to someone who has the financial means to exploit them.

Bottom line: you are correct. There are tons of people out in the world who own non-producing wells. And, only a very few who actually make money from them.

My two cents: I don't mean to be negative, but I'd be hesitant to take investment advice from anyone on a blog. It would be better to go to a reputable (certified) financial planner and discuss your priorities, goals, and the level of risk-taking you're comfortable with.

I totally agree with you, Sandy N.

Since the original poster is located in Texas, then it's pretty obvious there must be a drive by firms in the area to raise capital quickly for their operations.

I agree, Orchid. Based on what my brother's told me, this is not a business I would choose to speculate in. Unless you have a lot of background knowledge or partners who have a track record of success, you might as well be flushing your money down the toilet.

I have my opinion because right now I am in Alberta, Canada's oil and natural gas producer. It is Canada's "Texas".

Right now there is a ruthless drive to extract oil...and remember it is our province that has the infamous oil tar sands in Northern Alberta.

Fracking has not been proven enviromentally stable..since it does use a gas to break the ground, to bring the oil up to surface. There are concerns about contimation of water tables, fissures in others areas.