Oil Well

[Cole]

I have a chance to buy in on a Oil Well. I had a chance last year and passed because I couldn't come up with the money and I wasn't really sure how it all worked. Well my buddy at work got in on it and they have already hit oil and natural gas. They have already announced that it is a Case 1 which means it will produce more than 600,000 barrels. They haven't even reached the final spot where they believe the really good stuff is.
So with that said they are going to drill 24 more wells on this plot of land they have.
I am really tempted to get in this time, but a little scared because if it doesn't hit I just lose my money.
Any of you guys ever mess with any thing like this?
Oh yeah it would cost around $12,500 to get in.

 

[InDaShop]

A bunch of us at work have all invested in a handful of wells. But sounds like you guys are going after NEW oil to get a "Case 1". The 3 that I got in on are played fields. They are plays that the big guys Conoco, ExxonMobile, Shell, Anadarko, have already hit proved and puled from for years. Now that those wells aren't producing to some level for them, they pull out to put their equipment and resources on to wells that produce a certain level. So we have been going after "whats left", its totally not a get rich quick deal, the risk is low, and the payout is low. Make sense. They hit oil on all three wells I'm in on, and the buy in pwer share was similiar. I get a small check every month, $500 hundred bucks or so. So I'll start making money in like 5-7 years, so the gamble is that the play lasts longer than that......
One of the wells this crew did recently ended up being a duster, a couple guys I work with were pissed, they acted like babies, like they'd been scammed. I wasn't in on it, didn't have any more money to throw at it. Lucky me.....

Its a gamble thats for sure. But if the crew has hit on one well right there, odds are they'll get another straw in it again if its the same play.

Anyone know anything about the Bakken Formation in North Dakota?

 

[Cole]

Yeah, I am not trying to get rich quick by any means. It would just be nice to have an extra $500 coming in every month. Plus if it hit I could just take that money and invest it in a few more wells. My buddy at work is going to try and get 10 wells total. He has the money to back it up though if it doesn't work out. He put in 25k on this well and his looking at a payout of 3k-6k for the life of the well.

 

[InDaShop]

He put in 25k on this well and his looking at a payout of 3k-6k for the life of the well.

Is that 3-6k a month? HOLY CRAP, good hit.

 

[Bones]

I'd go for it, but I am sometimes too optimistic.

Big thing going for you is you are young and can recover from a loss easier than others. Could be a great thing, could be good enough to get you into a house down the road with a a sizeable down payment or like you said, more wells.

 

[Cole]

Is that 3-6k a month? HOLY CRAP, good hit.

Yeah it's a month, he is right around 3k give or take as long as oil stays above $100.00 a barrel. He hasn't gotten a check yet, he said he is going to start getting paid around November. He is also going to invest another 25k in some other well.

The name of the company is Enermax. The well is in Yoakum County, Texas.