Minggu, 08 Juni 2014

Checklists For Oil And Gas Investor

By Kenya Campos


Nowadays, warnings are already given for oil and gas investment scams, since the operation is still alive and well. The state securities regulators have already advised those potential investors not to be scared to ask questions about investment opportunities. A potential oil and gas investor Brookshire Salt Dome must consider the oil producing companies that are already existing for many years and listed on the stock exchange.

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 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.

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.

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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