jeudi 12 juin 2014

Checklists For Oil And Gas Investor

By Kenya Campos


Today, investors are already warned by the securities regulators to be preventive in dealing an investment, especially if you are not familiar with the company. You must ask the necessary questions before closing a deal with them. However, it is still important to engage a business with a reputable company and already certified by the stock exchange commission. An oil and gas investor Brookshire Salt Dome must be cautious and aware with this warning.

You can also minimize the chance to be a victim of swindlers that are rampant in the society today. You must be careful with your decisions, especially if you are already pressured. There are some list of steps that you need to follow before involving yourself in investing funds. Proper knowledge will keep you away from being deceived.

The registration requirements are the first things you should inspect before closing an agreement. You must ask carefully the promoters of a deal if they are certified and registered in the state where their business is situated. Once you already have the details, you can call the agency for verification. If your promoter claims that they are exempted with the requirements, you should verify the information and ask on what terms of the exemption they have.

If they are operating legally, they should be certain and willing to answer all your concerns. You must ask first the name of your promoter and ask their oil and gas business ventures. You also need to know their commission and compensation once they made a deal. You should verify the information about your promoter to the securities regulator if the salesperson is convicted of any crime or violated any laws.

You must also inquire about the background, experience and information such as capitalization, assets, retained earnings and even liabilities. Look for the right information when it comes to their funding process to cover up the costs.

You must be sure that the funds raised are in a separate account until needed and it cannot be mixed with the other funds. Be certain with the funds that are not used for other purposes. You must ask about how much they would spend for the cost of every fractional interest. You must know about the cost of the salaries, advertising, sales and commissions to the company. Ask for any documents that will be provided once the investment was made.

Requesting a disclosure about the cost of lease, relationship of operator and lessor and selling the lease must be given to you. There is also a safe statement that indicates the beginning of a drilling. You should also have a copy of the contract between the operator and the salesperson.

Actually, if you just followed the checklist, it may sometimes take longer and there is a tendency that you have already engaged in the investment deal before receiving the result of your consultation. Thus, it is better to directly consult and ask for an advice from a neutral expert.

You can also seek help from your state regulators, since they have the responsibility for the safety of each investor in their area. You can ask them to ask necessary questions, especially when it comes to business matters.




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