How To Buy Into Oil Wells

This is our first oil asset purchase.

How to buy into oil wells. You can actually buy oil wells today for as little as 20 000. 2 find a broker who specializes in the sale of oil wells. Remember this is an oil deal you re looking for a greater than 5 to 1 and hopefully a 20 to 1 payoff. We hope that you keep up with the weekly videos we post.

Key is to find one with a pay zone behind pipe that has not been produced. Brokers must be registered with the securities and exchange commission or sec and must be a member of the financial industry regulatory authority or finra. You get the picture. With the new advent of no fee stock trades at all of the big brokerage houses you can buy shares of stock without worrying about fees cutting into your investment.

By owning a percentage share of a particular lease or well you are paid that percentage less than the operating costs each. You can also buy stock in other companies such as british petroleum petrochina chevron conocophilips marathon oil royal dutch shell gazprom the anadarko petroleum corporation and many others. Browse 7 oil wells for sale on bizquest. In this modern energy economy owning an oil well is a very attractive.

We drove up to oklahoma to walk the lease and check them out. They are generally salvage type wells pumping a barrel or less a day. With futures stocks or etf s you are simply buying the opportunity to speculate hoping the price goes up. If you need to be able to say you own an oil well it would be better for you to buy either a partial working interest pays bills receives income from oil gas sales or a royalty interest does not pay the bills in a specific well or group of wells.

The main source of income in wells is derived from the sale of the oil. There are quite a few producing oil wells for sale on the market these days. Each of these companies engages in oil exploration and you can buy direct exposure to them simply by buying shares or adrs american depositary receipts through your broker. You are buying a stream of income as long as you can keep the stream flowing.

The better the area for production the higher the cost. Investing in an oil well is usually a large investment ranging from 100 000 to over 1 million dollars usd. If you ve put a straw into an oil or natural gas reservoir the size of your backyard pool well.