Are you planning
to make oil and gas investment? If yes, than this is the right time to make an
investment. The prices of oil and gas are soaring high, and are likely to
increase. Buying oil and gas royalty interests is expected to be the safest
investment. There are number of ways you can approach oil and gas investment.
However, you need to see which one will be suitable for you.
Here are some
guidelines to pursue oil and gas investment:
1)
First of all, the investors should determine
whether they should invest in UIT or a mutual fund. Mutual fund is meant for
investment in energy rather than a direct investment. UIT is the less risky
option among the two, but the returns are lower too. On the other hand, mutual
funds are riskier with an offering of greater returns. In addition to the
returns, mutual funds also offer a whole range of tax incentives not available
otherwise.
2)
When making an investment from buy oil and gas royalties; direct
participation is recommended. When opting for direct participation, you have to
choose whether you want a working interest, royalty arrangement or a partnership.
Oil and gas royalties are payable to the land owners, so you should consult a
real estate agent to know about the lands having oil wells.
3)
If you are someone who chooses to make and oil
and gas investment directly, without being the owner of the land, than you have
to decide whether you want to buy shares in partnership or acquire part or
complete interest of the oil project.
4)
If you have decided to make an investment in the
form of partnership, than you have to prove that you are a n accredited
investor. This implies that you should have a net worth of $1 million or you
earn 250000 a year. You will be sent a k-1 form that details your share as a
partner in the expenses and income.
5)
If you are someone who is planning to make an
investment in the project’s working interest than you should know that the any
payment received become your earned pay. This obliges you to shell-out self-employment
tax.
6)
Basically, working interest investment comprises
of being a partner with a geologist who is able to drill or rework a project to
make a profit out of it.
7)
You should keep in mind that SEC doesn’t
directly regulate the working interest investment.
8)
You should know that the projects related to oil
and gas investment are not advertised. It is recommended to consult a petroleum
engineer so you may know what can and cannot be done.
9)
There are number of risks involved in oil and
gas investments. Educate yourself over the subject before making an investment.
You can surely generate high profits by following the above mentioned
guidelines.Visit for more info www.uniroyalties.com/Buy-your-royalties
UNI Royalties, Ltd.
P.O. Box 1959
Parker CO 80134
Toll Free: 1-888-916-0220
Local Phone: 1-720-663-1187
e-mail: sellroyalties[at]gmail.com

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