Oil and Gas Investments
(Frequently Asked Questions) …
Why Invest in Oil and Gas Exploration?
Oil and gas is the life blood of modern times and the continued supply is vital to maintain the world’s growing population and fuel the wheels of commerce. Increased consumption of existing oil and gas reserves by both the developed economies and increased demand from the developing economies of the world including China and India, continually put pressure on existing supplies which has continued to push prices higher for these precious commodities. Direct investments in oil and gas allow sophisticated “accredited investors” to profit individually from the increasing demand for oil and gas. This provides investors monthly cash flow based upon production as well as the ability to diversify their portfolio.
How Does One Invest in Oil and Gas?
There are many ways to invest in oil and gas including buying stock in medium-sized to major oil and gas companies, oil and gas mutual funds, drilling funds, royalty funds, commodity trading, and investing directly with the independent oil and gas companies. Crestwood Energy LLC, is a an independent oil and gas company and we allow direct participation in the wells that we drill. Different companies set these direct participation programs up differently and the most commonly way they do this is setting up an LLC, for the well that they are drilling. The investors do not actually own a portion of The Well, but a portion of the LLC, and they receive a portion of the LLC’s income. the way we do it at Crestwood Energy, is to give each individual investor a direct assignment from the courthouse of the county where The Well is drilled. This instrument denotes that participant’s percentage ownership in that named Well.
What are the Risks Associated with Investing in Oil and Gas?
There are risks associated with all investments, and investing in oil and gas is no different. Investors need to be able to bear the total loss of oil and gas investments if the well does not work out. At Crestwood Energy, we use the current (time-tested), Geologic, Drilling and Completion technologies. By studying other company’s successful procedures and criteria in the area, Crestwood Energy uses those methods to prevent a dry hole and the total loss of a participant’s investment. However, the total loss of a participant’s Drilling & Testing investment is always a possibility. Please fill out the contact form for more information on the risk associated with drilling and oil/gas investments.
Am I Qualified to Invest in Oil and Gas?
At Crestwood Energy, we seek sophisticated “Accredited Investors”.
What is an “Accredited Investor”?
An “Accredited Investor” in the case of an individual, person who, (i) has individual next worth (or joint net worth with the person’s spouse), that exceeds $1 million at the time of the purchase of (ii) with income exceeding $200,000 in each of the two most recent years (joint income with a spouse exceeding $300,000 for such period).
How Can I Get Involved?
If you’re interested in becoming a participant with Crestwood Energy, please visit the participant section to choose the participant category you’re interested in. If you have any more questions, please fill out a contact form and one of our company representatives will contact you directly.
Disclaimer: This is not an offer to sell a security or a general solicitation; an offer to sell a security only may be made by a private placement memorandum to relationship based sophisticated and or accredited investors where permitted by law. The purpose of this website is for general information research purposes. By submitting this request form you are confirming that we have not generally solicited you directly or indirectly whatsoever to invest in any oil and gas prospect; you agree to be sent additional information and/or contacted by phone by an oil and gas company. Website content is not meant to be considered financial and/or investment advice.