How does a person invest in oil and gas?
There are many ways to invest in oil and gas including buying stock directly in an oil and gas company, oil and gas mutual funds, commodity trading, and investing directly with independent oil and gas companies like REI Energy.
What are the advantages of investing in an oil and natural gas program?
Some advantages of investing in an oil and natural gas program are potential cash flow, capital gains from the sale of interest and possible significant tax benefits.
What are the tax benefits for investing in oil and natural gas?
The tax advantages for investing in an oil and gas could potentially be significant, but each investor's situation may be different. The three main groups of tax deductions are intangible drilling costs, tangible drilling costs and lease costs. Usually, intangible drilling costs can be written off within the first year.
What are some disadvantages of investing in an oil and gas program?
Oil and gas programs involve risks. Drilling explorations wells are more risky than development wells. Also there are risks such as declining energy prices and the risk of drilling a dry hole. By drilling an unconventional well using the latest horizontal technology and multi-stage fracturing, we can potentially reduce the risk of drilling a dry hole.
What’s the difference between conventional and unconventional wells?
Conventional wells have a straight vertical wellbore. Unconventional wells are horizontal wells that are drilled directly into the source rock. Because of the length of the well, one wellbore can have up to approximately 40 fracturing stages.
What are some unconventional plays in the U.S.?
Shale plays, often called unconventional plays, have been known to produce oil and natural gas for many years, but with advances in new horizontal drilling and multi-stage fracturing technologies, these unconventional plays are starting a new era for oil and gas production here in the U.S. Some of the more popular shale plays in the U.S. are Bakken, Barnett, Haynesville, Marcellus and Eagle Ford. REI Energy has interests in wells within many of these shale plays.
What are the benefits of unconventional drilling?
Some of the benefits of unconventional drilling may be: reduced drilling costs, reduced dry hole risks, sustained well life and in several cases it may increase the total production of the well.
How does an investor choose the right energy partner?
When choosing the right energy partner, an investor should make sure that the company has a proven successful track record, partners with major oil companies, employs the latest in drilling and discovery technology, and meets stringent due diligence criteria.
Does REI Energy use the latest drilling technology?
Yes. REI Energy partners with major operators to utilize the latest in drilling technology to reduce dry hole risks and increase the likelihood of drilling productive wells. Many of REI Energy’s wells today utilize horizontal drilling technology and are currently being drilled with 12-38 fracture stages. Hydraulic fracturing uses a liquid mix of water and sand and is injected into the rock at a high pressure, creating fractures in the rock that allow the oil and natural gas to flow freely to the surface. According to the EIA, U.S. oil production is expected to increase 20% because of multi-stage fracturing technology.
Does REI Energy contribute to the partnerships it forms?
REI Energy stands behind each partnership we develop, which is why we contribute to the cost of each venture and participate as an investor in each program.
What is an individual accredited investor?
As amended on July 21, 2010, an "accredited investor" as defined in Section 501(A) of Regulation D under the Securities Act of 1933, as amended ("The Act") means any natural person whose individual net worth, or joint net worth with that person's spouse, excluding the value of the individual's or couple's primary residence, at the time of his purchase exceeds $1,000,000; or any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those two years and has a reasonable expectation of reaching the same income level in the current year.