Wednesday 11 June 2014

Things To Do Of An Oil And Gas Investor

By Kenya Campos


Today, there are already warnings given to most investors to avoid themselves being cheated by most swindlers. The securities regulators in a state are advising those investors to be cautious, especially they are giving part of their funds. They are advised not to be afraid to ask certain questions when someone is offering a deal to them. Thus, an oil and gas investor Brookshire Salt Dome must be careful in accepting a deal and needs to study further the company that already operating in the industry for so long.

There is a possibility that you will be away from swindlers if you are not pressured with an investment decision. You must follow different steps to consider before you give up your money for an investment deal. There are checklists that are offered to most business people if you have already decided to invest something to a company.

Before investing something, you must ask first the registration requirements. You should interrogate the promoters if they are a member in the state securities in which their business is located. Then, you can contact the agency to verify the information you received. If the promoters are claiming that they have exemption with the requirements in a state, you find out on which area and terms of their exemption.

If the agreement is legal, salespeople should answer all the questions that are given to them. They should not hesitate to answer, like the background of their company and how long do they exist in the industry in the field of oil and gas business. It is also important to know what are their compensations when they have made a deal. Contact the securities regulators in the state to verify if there are no rules and policies that are violated with the salesperson.

You must inquire the background of the company and their experience in the industry. Seek any information about their history, assets, retained earnings and capitalization. Find an exact information about their funds to cover all the costs. You should know if they are supported by the service of internal revenue.

You must ensure that your funds are separated and not mixed with other funds in the company. You must be certain that your funds are not utilized for any other purposes beyond your knowledge. The total cost spent in the fractional interest must be divulged to you. They must provide you the right information about the advertising, salaries, commissions and the cost of sales. Request for a certified document as a proof that there was an investment deal.

Disclosures are important to be granted to any investors about the relationship of the lessor and operator, sale of the lease and its cost together with other information. There must be an assurance that there is statement on the best time for the drilling. You must have the contract between the promoter and operator.

The checklist is sometimes a long process and it needs more time to have the result. There is a possibility that you can already invest before receiving the result. It is important, that before giving part of your funds to a deal, you must seek first the advice of a neutral expert to prevent being swindled.

You can also seek the help of your state security administrator that is responsible for protecting the investors. If you have further questions, you contact the administrator. It is advisable to contact them before investing your money.




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