Oil & Gas

There are two basic types of oil & gas programs, one is Working Interests and the other is Royalty Interests. Working Interests have to do with direct development; it’s the process of identifying and drilling new holes. These carry higher risk, higher return potential, and can offer considerable tax advantages. For those investors wanting more income than traditional real estate and less risk than working interest there are Royalty Interest. This is the direct ownership of interest in mineral rights on known producing wells. Royalty Interest are predominately a cash-flow play with returns fluctuating with oil and gas prices. Risk is managed in both cases through broad diversification.