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Oil Drilling and Production Investment Opportunity

4,042 Views | 27 Replies | Last: 2 yr ago by mazag08
G. Rollie
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Howdy Ags,

Posted this weekend about raising capital to drill an oilwell with my upstart oil e&p company. Received some interesting feedback below. Realized that TexAgs probably isn't the best place in looking for serious capital for an investment of this magnitude, but I'm glad I took the plunge. Appreciate all of the responses and new connections. Good luck to all with your future finances.

RC
John Francis Donaghy
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So you're a boy from Oklahoma, and you're asking if we want the Carney Man?
Baby Billy
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Gooooood luck with that one
lb3
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If this drill site had good seismic data or the OP had a strong record of success, I suspect he would have access to more traditional financing and wouldn't need to use a free email account for his business.
G. Rollie
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Spoken like a true know it all!
lb3
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You've got 40 previous posts in 10 years on this site and you come asking Ags for $350k?

I may not know everything but your solicitation is rude at best and likely dishonest.
G. Rollie
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lb3 said:

You've got 40 previous posts in 10 years on this site and you come asking Ags for $350k?

I may not know everything but your solicitation is rude at best and likely dishonest.


You're right, you don't know everything. Instead of spending the last 6 years surfing TexAgs looking for stock tips, I've been busting my ass in the oilfield learning from bottom up.

How much capital have you raised in your life? How many oil wells have you drilled and completed? Instead of bashing a fellow Ag for simply presenting an opportunity for others on this forum to at least reach out and ask about, you simply assume that I don't know anything and that I'm a scammer.

Anyone who's ever started a business and looking for partners knows that in the early stages, you do it by any means necessary...no matter how unflattering it may be.

Go kick rocks dude. Lots of people would kill for a huge tax deduction, a 3-4 year payout, and monthly cash flow for the rest of their adult lives.

Gig em, class of '13...trying to do something extraordinary with my life.
Mr. Lahey
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SMM48
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You keep doing what you're doing 13. Raising capital is tough business. Don't lose heart. Stay with it

Side tip.

X the Gmail account. Pay a few bucks for your own domain.

It displays paying attention to detail

Good luck 13
lb3
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I wish you luck and hope you build a successful oil firm. I have in-laws who are dreaming about what you're trying to do. I'm very familiar with royalties. They can provide a fantastic return on investment. My grandparents had fields named after them and my mother has been cashing checks for 30+ years on some of her wells and my grandparents for 40 years prior to that.

But we don't know you and you come here seeking cash. It's not much different than crashing a party and pitching Amway. TexAgs is littered with Ags who have been scammed out of thousands thinking they were helping others and you haven't even spent the $10 to buy a domain and set up an email account.

ETA. There is a corporation with that name. For those of us interested in due diligence, mind sharing why the corporate status was terminated on October 21st, 2020?
CashinOut
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G. Rollie said:


You're right, you don't know everything. Instead of spending the last 6 years surfing TexAgs looking for stock tips, I've been busting my ass in the oilfield learning from bottom up.




Sounds like you're a hard working man..in oil...

TO THE OB!!!!!
Baby Billy
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You should have known that soliciting business on Texags never goes over well for anyone.

Except for the college kid sharpening knives on the OB.
AggieBaseball06
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lb3 said:

I wish you luck and hope you build a successful oil firm. I have in-laws who are dreaming about what you're trying to do. I'm very familiar with royalties. They can provide a fantastic return on investment. My grandparents had fields named after them and my mother has been cashing checks for 30+ years on some of her wells and my grandparents for 40 years prior to that.

But we don't know you and you come here seeking cash. It's not much different than crashing a party and pitching Amway. TexAgs is littered with Ags who have been scammed out of thousands thinking they were helping others and you haven't even spent the $10 to buy a domain and set up an email account.

ETA. There is a corporation with that name. For those of us interested in due diligence, mind sharing why the corporate status was terminated on October 21st, 2020?


You know what Toby, when the son of the deposed king of Nigeria emails you directly, asking for help, you help! His father ran the freaking country! Ok?
SMM48
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That kid!
BO297
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Good morning all. I have an NFT of an oil well for sale. You won't actually own a well, you will not actually sell oil, but you 100% have the right to say you own the digital version of that well. Starting the bidding at 1 bizzilian dollars.

Giving you a hard time OP. I really wish you well. I hope you are legitimate. I hope you explain to potential investors the risk of a dry hole or the fact that costs can easily double and you could still have a dry hole.

I hope you find investors and discover a new field that changes your life.

All of that said, I feel like this is the wrong place and deals like this being allowed would ruin a pretty good forum. If allowed, there would be 99 scams for every 1 legitimate deal.
CaptnCarl
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I personally know OP and can say the deal is in good faith. Whether the well is profitable, that's just the speculation of wildcatting.

So, OB can sale guns, ammo and ranches, RE board can have RE listings, HoustonAggie can peddle pennie stocks, but an Ag posts one time about seeking partners for his oil well, and thats out of line for the B&I board?
EnglishElhew07
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I don't think this type of post should be banned. But I will also say that I assume no one would actually invest in something with no more information than what they found in a message board. Stocks are discussed a lot on here but it would be interesting to hear what experienced investors say about various deals, real estate, oil and gas, PE etc. I think it would stimulate good conversation.

OP - Can you tell us more about your prospect? Do you have a PDF version of the pitch? I assume if you are drilling the well you already own the leases etc. So you will not be in a situation where you could have someone go around you, or something of that nature.

Finally, there are rules around raising Capital. OP and any others soliciting investment should make themselves certain that they are not in violation of any of these rules.

Good Luck - Raising money in the Oil Business right now is not easy.

ranchag04
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Would like to see more opportunity post like this but I understand why we don't, they are unnecessarily attacked. Interested, email the OP, if not move along.
FriendlyAg
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OP I know nothing about oil production.

I do feel that you should have used your post with the angle of what you're trying to do and have ags critique your pitch. That would make you better.

I would be hesitant raising money from people you don't know who are not accredited investors.

Good luck.
Old RV Ag
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CaptnCarl said:

I personally know OP and can say the deal is in good faith. Whether the well is profitable, that's just the speculation of wildcatting.

So, OB can sale guns, ammo and ranches, RE board can have RE listings, HoustonAggie can peddle pennie stocks, but an Ag posts one time about seeking partners for his oil well, and thats out of line for the B&I board?
I'm not attacking but stating some things that cause people to be cautious. OP gave his name and if you look it up, he is in the oil business but has no Aggie ties - yet he has an Agtag. Then you (who could be a sock) claims he's a great guy and real.
Drillbit4
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OP gave some very realistic investment expectations for oil and gas. I've normally seen XXX million barrel discovery, 30X ROI, no risk, etc.
it's very common to see these pitches in certain investment circles. OP - just link a pitch deck or ppt or something. If ppl are interested, they'll look. And I agree about the email address.
azul_rain
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whats the minimum investment amount ?
you may all go to hell and i will go to Texas
G. Rollie
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FunkyKO said:

You keep doing what you're doing 13. Raising capital is tough business. Don't lose heart. Stay with it

Side tip.

X the Gmail account. Pay a few bucks for your own domain.

It displays paying attention to detail

Good luck 13
Hi Guys,

First off, let me say, I really appreciate some of the feedback I have gotten since my original post. I obviously realized what I was getting into when posting on TexAgs.

I remember I got my first job in the oilfield on TexAgs, when I was a super-senior at A&M wanting to get into the oilfield back when oil was $100/bbl. I had a below average GPA (thanks for weeding me out engineering dept), and no one would even glance at my resume (esp with non engineering background). An up and coming oilfield services company posted a job opening, I went and interviewed, and two weeks after graduation, I was in the thick of the Eagle Ford running trucks all around southern Texas 24/7.

The reason I came back to TexAgs was simply to try and draw from the same "well" (pun intended) that got me to where I am today. My goal was to simply offer a chance at someone to take another chance on me, just like the oilfield services company did when I was desperately trying to get my foot in the door in early 2014, and have me return the favor in the form of (what I believe) to be a solid investment.

Side note: no matter if the oil well is dry or not, many people don't know the huge tax incentives that come with the expenses of drilling and completing an oil well. 100% of all drilling costs are tax deductable. Approx. 85% of completion costs are tax deductible. Depreciation on all surface equipment (pumping unit, tanks, etc). Percentage depletion where 15% of gross income from the oil I produce is oil is tax-free for small investors and independent oil and gas producers (such as myself). So even if I drill a big freakin stinker of a dryhole (which in an area of proven historical production is unlikely, but not impossible), you're gonna get a sizeable deduction on your federal income taxes in the year I drilled the thing.

Gig 'em '13.
SMM48
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sockerton
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Dude, you need thicker skin. I wonder if you have already blown through your family & friends funds. Good luck and work on your salesmanship.
HarleySpoon
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G. Rollie said:

FunkyKO said:

You keep doing what you're doing 13. Raising capital is tough business. Don't lose heart. Stay with it

Side tip.

X the Gmail account. Pay a few bucks for your own domain.

It displays paying attention to detail

Good luck 13
Hi Guys,

First off, let me say, I really appreciate some of the feedback I have gotten since my original post. I obviously realized what I was getting into when posting on TexAgs.

I remember I got my first job in the oilfield on TexAgs, when I was a super-senior at A&M wanting to get into the oilfield back when oil was $100/bbl. I had a below average GPA (thanks for weeding me out engineering dept), and no one would even glance at my resume (esp with non engineering background). An up and coming oilfield services company posted a job opening, I went and interviewed, and two weeks after graduation, I was in the thick of the Eagle Ford running trucks all around southern Texas 24/7.

The reason I came back to TexAgs was simply to try and draw from the same "well" (pun intended) that got me to where I am today. My goal was to simply offer a chance at someone to take another chance on me, just like the oilfield services company did when I was desperately trying to get my foot in the door in early 2014, and have me return the favor in the form of (what I believe) to be a solid investment.

Side note: no matter if the oil well is dry or not, many people don't know the huge tax incentives that come with the expenses of drilling and completing an oil well. 100% of all drilling costs are tax deductable. Approx. 85% of completion costs are tax deductible. Depreciation on all surface equipment (pumping unit, tanks, etc). Percentage depletion where 15% of gross income from the oil I produce is oil is tax-free for small investors and independent oil and gas producers (such as myself). So even if I drill a big freakin stinker of a dryhole (which in an area of proven historical production is unlikely, but not impossible), you're gonna get a sizeable deduction on your federal income taxes in the year I drilled the thing.

Gig 'em '13.

Honestly....good luck and I mean that. But your post above brought back a long, lost memory:

I took an entrepreneurship class at A&M back in the mid 80's that was once a week for three hours on Wednesday evenings. A successful, old army ag (class of '52 or so) taught the class....he would fly down and back from Dallas on Wednesday evenings in his private jet to teach the class. Two things I really remember from that class and after 30 plus years of my own entrepreneurial activity:

1. "If your inflow don't equal your outgo, then your upkeep is going to be your downfall."

2. "When folks solicit an investment from me and they emphasize how any loss will be tax deductible, I always tell them: ' I can lose my own damn money just fine, I don't need your help losing my money and taking my deduction for it."

No truer words than #1 above regardless of the size of your business. And for an example of #2, he used wildcatters and their constant emphasis on tax losses.
Old RV Ag
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hedge said:

whats the minimum investment amount ?
Need to change your name to donkey

azul_rain
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Lol
you may all go to hell and i will go to Texas
mazag08
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Would like to see the underwriting and forecasting for this deal. I'm not necessarily interested but might know people who are. And there's just too much to unpack without seeing more detail.
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