HOW DO I ASSESS A POTENTIAL OIL & GAS INVESTMENT?
Understanding or assessing potential really starts with a two phase process: 1) The company that will be sponsoring the program. 2) The property that the company will be developing or acquiring. The Company One of the best ways I have found to analyze the company is to look at their management and track record. Look for solid financial records as well as integrity in their management and operations. The easiest way to find this information is to ask the company for what is commonly called a Due Diligence document. A due diligence is basically a summary report of the company, its management, its staff, reserves, inventory, equipment and track record. From the due diligence you should be able to determine how well an investor has fared in prior programs, how economical the programs have been and how sound the proposed undertaking might be. Technical due diligence will help eliminate most of the unsound investment proposals. One area of the due diligence I like to focus on is “Prior Activ
