Oil and gas investing in Oklahoma and Texas, among other places, presents qualified investors with a golden opportunity to grow and diversify their portfolio with potentially low-risk, high-return opportunities. The demand for energy investing in Oklahoma and other territories have seen a spike with the inauguration of, arguably, the most-energy-friendly administration since the end of the Great War. This activity has, unfortunately, been coupled with a rise in the number and sophistication of oil and gas investment scams.
Oil and Gas Investment Scams
Although the vast majority of energy investments are marketed and run by reputable entities, fraudsters are still commonplace as with any other investment opportunity. These unscrupulous players are operational in oil and gas investments such as:
- General partnerships
- Limited partnership interests
- Ownership of fractional undivided interests in leases
Fraudsters make it nearly impossible for victims and law enforcement officials to fish them out by the way they structure their business. Their companies are often registered in one state, their headquarters located in another, while the offer for oil and gas investment opportunities are made in a totally different jurisdiction from the two.
How to Protect Yourself
Registration
Check with your state securities commission to make sure the offering is registered in either your state or the company’s. Verify any claims of registration exemption with the state securities commission and understand the terms thereof.
Company
You must get information on the people running the company behind the offer, with a view to discovering their experience in the industry and history with the company. Also find out more about the company’s history and its financial position.
Lease
Get more information on the legal status and history of the property on which the drilling is to be done. Know whether or not the lease is being acquired from the principal at acquisition cost or if there is profit to be made. Check out the geologist report and learn as much as you can about any leasehold burdens such as landowner royalties.
Salesperson
A dodgy salesperson will always be reluctant to answer critical questions or provide written responses. Ask the identity and background of the salesperson and check with the state securities agency on whether or not they have previous sanctions for securities laws violations.
Get Expert Help
The best way to protect yourself is to get the help of a reputable oil and gas investment company. Fig Tree Capital Ventures gives you access to quality oil and gas investment opportunities in Oklahoma, Texas and other notable jurisdictions. Find out if you qualify to invest today by talking to your Personal Advisor. Simply call (866) 300 2170 or (866) 894 7309. You can also email us to get more information and answers to all your question about North Dakota, Texas,and Oklahoma oil and gas investing at info@figtreecv.com.
