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I saw this opportunity and it sounds pretty good to me but since i am new to this, i will like an expert opinion. Any advice at all will be greatly appreciated. Below is what the ad looks like

GREAT opportunity to own a TRUE ABSENTEE RUN BUSINESS , you can own a piece of oil wells in McClain County, Oklahoma drilled AND operated by a $1 billion+ co. in business since 1985 and has drilled OVER 160 wells in the area. They are one of the BEST / most successful oil drilling co.'s in the country !!!! APPROVED FOR YOU TO USE YOUR SELF DIRECTED IRA ACCOUNT $ !!!! The wells are drilled on a property IN BETWEEN 2 very large oil fields that to date combined have produced OVER 25 MILLION BARRELS OF OIL !!! The co. for years has been convinced this property connects the 2 large oil fields and their 3D seismic testing shows they are correct. The first well was drilled in Nov/ Dec 2013 and high estimates were it would produce oil for 10-12 years returning approx. 8-1 on your money. Instead we have a MONSTER well that hit oil in 5+ zones and will produce oil for 40 YEARS !!!! You can pay big $ for a small business but REALITY IS Theirs no comparison between investing $250k -$500k+ in a small bus. you'll have to spend 60+ hours a week running , earn on average of less than $100k a year, plus you'll have plenty more expenses and your odds of failing are OVER 60% . OR You can spend $250k ( minimum is $50k) and break it up over the course of a year in 5 different oil well projects putting just $50k in each one. let's assume just 3 out of the 5 projects work out and hit oil ( that's below the 77% hit rate for the co. with almost 170 wells drilled in the area) and we will assume each of the 3 wells that hit come in at the LOW END earning you just $3k a month ( $50k gets you 5 units at $10k each, each unit on low end would give you approx $600 a month ) that's income of $108,000 AND IT'S 100% ABSENTEE RUN . You can go ahead and do whatever else it is you want to do , or you can work smart and stay with the oil wells . The minimum to gain ownership is just $20k , VERY limited opportunity, drilling starts in Feb.,

No legal description showing where this "monster" well was drilled? No current production info? No well name? If a "monster" well was drilled in December, 2013, should be producing now right? Ask them for current production info, well name, API #, operator, copies of completion report etc. Will you begin receiving income before or after the well pays out? Likely after, if at all, and the well could take 10 years to produce enough income to pay the tab for drilling it.

Better off buying mineral rights outright and leasing them to a legitimate company or participating in a legitimate company's proposed well than sending money to some mystery "billion dollar company" who sent you an unsolicited request asking for money for a "monster" well that's already in production.

I'd consult an experienced oil and gas attorney or investment advisor before spending a dime on this. If you can afford to invest $50K to $250K in something like this, then you can afford to hire a good attorney or investment advisor to advise you before jumping in. I can almost guarantee you they will tell you this is a scam and to run away. Run away fast!

Oh, and if you want to save some time, just ask these guys if they have a federal license to sell securities from the SEC. Likely they do not, and that's certainly what they are doing here.

Hope this helps you out.
Frederick M. "Mick" Scott CMM RPL
The Mineral Hub


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Frederick M. Scott


Oil and gas leasing, lease negotiations, how to best deal with the oil and gas companies or their representatives, buying/selling mineral rights, forced-pooling, correlative rights, deeds and conveyances, and "post-production" costs. I am most experienced with Oklahoma properties and laws, but am able to answer questions concerning other oil and gas producing states in many cases.


I am a Certified Professional Mineral Manager (CMM) certified by the National Association of Royalty Owners (NARO) in Tulsa, OK. I am also a Registered Professional Landman (RPL) with the American Association of Professional Landmen (AAPL). I have managed my family's oil and gas properties in Oklahoma for over 10 years and have dealt with many landmen, title analysts, attorneys and other oil and gas professionals in the process. I have written several articles which have appeared in various oil and gas industry magazines and newsletters. I have negotiated and drafted leases, prepared deeds, affidavits, and other legal instruments relating to my own minerals, as well as performed title, legal research, and curative work for same. I have acquired a good deal of knowledge on the subjects of oil and gas law, mineral appraisal, and landwork over the past ten years, and also worked as a professional landman and lease buyer for a time. I've seen the business from "both sides" and therefore feel confident I can help out most of the folks who ask questions in this forum.

National Association of Royalty Owners (NARO); American Association of Professional Landmen (AAPL)

National Association of Royalty Owners "Action Report" (ROAR); NADOA Magazine, The Mineral Hub, Landman Magazine, and several royalty owner association group's newsletters.

Certified Mineral Manager (CMM), Registered Professional Landman (RPL)

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