Things To Do Of An Oil And Gas Investor

June 14, 2014

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.

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 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 should also inquire about the information of the company, its background and their experiences in the industry. It is better if you know their assets, retained earnings, capitalization and liabilities if there is any. Look for an important information about them, especially the funds that will cover all the costs.

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.

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 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.

You can visit for more helpful information about The Oil And Gas Investor Prevention From Swindlers.

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posted in Stocks by Kenya Campos

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