How does one invest in oil and gas?
The two most popular means of investing in oil and gas are through the stock market or direct participation. TerraFina Energy in a privately held company so all our investors come to us directly. Through TerraFina Energy, you have the opportunity to select from one or multiple well offerings. As a working interest (WI) owner, you receive a share of the income generated from well.
Where are you drilling?
TerraFina Energy is currently operating a well in Frio County, Texas and have drilling permits for another in Jim Hogg County, Texas. We are actively seeking investors for a large West Texas play and are reviewing additional options in North and South Texas. Our goal is to find a project working with Women Owned Business and women investors.
Why should I invest in oil and gas?
There is a limited supply of oil and natural gas worldwide and these supplies are dwindling. The top 10 consumption countries use more than 50 million barrels of oil per day. Your participation in a producing well will generate monthly income, as you will share in the revenue generated. Investors also receive tax benefits from their investment. The Tax Reform Act of 1986 provides oil and gas investors with one of the few remaining investments that allow investors to shelter income. Investors may be able to deduct 65 percent or more of their investment within the first year, whether the well is successful or not, and 15% of your income is tax-free.
Who should invest in oil and gas?
As defined by the SEC, TX State Securities Board and the Financial Industry Regulatory Authority (FINRA, formerly the NASD) investors
•should be able to sustain the loss of all or a portion of the investment
• be able to benefit from the tax advantages associated with the investment
• are an accredited investor and
• if not accredited, the investor should be a sophisticated investor and the investment does not exceed 20% of your net worth.
How transparent is our process?
TFE cannot only provide quality investment opportunities in our projects, but we also joint venture with other well-established operators on their drilling projects. We do this with complete transparency, as we believe our estimates are rational and realistic. Before we initiate any project it is thoroughly review and analyzed. In addition to the geological features of a well, we also forecast the wells decline rate in an effort to improve income projections. None of this will eliminate the risk that exists when investing in oil and gas.
What are the risks associated with oil and gas investments?
Just like investing in the Stock Market or any other investment you stand the risk of losing all or part of your investment. In an oil and gas investment, investors can offset these losses through tax deductions as 100 percent of every well investment can be written off against income over time.
What is a “rank wildcatter”?
A rank wildcatter is someone who has drilled an exploratory well in an unproven territory.