Why Invest in Oil & Gas
Return of Capital in 12 months is possible Better than 10 to one Return on Investment is possible over a 10-year period Greater than 50% Annual Rate of Return is possible No wildcat drilling Primarily enhancement of existing proven wells with proven reserves (secondary recovery) through proven technology. If there is a positive outlook for successful in-field developmental drilling in the area, we will seriously consider the opportunity. Participation in small in-field drilling projects which are simpler to supervise and are less risky. The USA rig count (May 07) is 61% of the total global rig fleet. The factors that contribute to this immense rig usage in the USA includes: a) a healthy industry of independent oil companies. b) geologic opportunity with new technology to extract more oil and gas out of the ground. c) favourable long-term price levels for oil and gas. Diversification of investments into a multitude of leases and wells No Multinational Cost Structure (little administrative costs) The General Partner has long proven experience in the industry Clear and transparent business model Quarterly distributions The General Partner has no participation in earnings until the investors have reached a minimum annual return of 10.5%. * No correlation with stock markets ** Wildcat drilling: Drilling activity in a new area without existing proven reserves *** Financial reports and analysis available
OTHER CONSIDERATIONS: TAX BENEFITS Drilling is the very best tax advantaged investment (Newsweek) Congress gives tax breaks to individual investors that are not available to large companies. Drilling costs are 100% tax deductible ... 65 to 80% can be written off in first year. Up to 15% of income is tax free due to the Small Producers Tax Exemption. INVESTMENT OPPORTUNITY Small drilling prospects are better than ever (and there are more of them) because the US has a large and healthy independent oil and gas industry.       COMPETITION The big money has gone offshore and overseas, because there are too few easy-to-find big oil fields remaining Over 10,000 oil companies have left the arena since 1982. LEASE COSTS Big Oil companies are not as anxious to renew expired leases (so lease costs are low). DEMAND/CONSUMPTION Petroleum demand is doubling about every 10 years. U.S. oil stock piles are at 27 year low. OIL PRODUCTION TREND US output is at a 35 year low. Over two-thirds of domestic oil wells are classified as marginal (avg = 3 bls/day). Imports are now over 60% (imports were 30% just before the oil embargo). PRICE FORECASTS Long range projections are up. DRILLING COSTS Rig activity is up, but the level of activity is reasonable particularly for shallow wells. Shallow rigs are generally available within a 30-day time window. TECHNOLOGY Recent advances in oil finding technology has improved recovery and reduced risk. or click here for more information www.wellenhancement.com