Are drilling oil and gas wells considered a safe investment?
In the strictest form of the word safe, the answer is no. Every investment carries some degree of risk. At Red Rock, we do the best job we can in evaluating a prospect and prior to drilling we feel confident that oil and gas does exist and is likely to be in commercial quantities. This is not an exact science but practiced conservatively, may yield desirable results. Once the drilling begins, there is some risk that something mechanical could go wrong, thereby losing or damaging the well. An investor needs to be able to risk losing his capital without affecting his style of living when considering an oil and gas investment. * These questions and answers are being provided for informational purposes only. Red Rock Energy Partners does not give tax advice and any investor/potential investor should consult a CPA regarding any and all tax issues regarding oil and gas investment.
