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Follow on Google News | Direct Participation in Oil and Gas Drilling Programs - Step Two / MemorandumsLearn how to invest in oil and gas drilling programs and acquire ownership directly in the well and the leases. Learn more about non registered securities/memorandums, and how they apply to your investment.
By: Indepth Exploration The following Sections, (Table of Contents) should be included in a properly constructed Oil and Gas Drilling Program Memorandum. Each section should include an indepth overview of that section's topic. TABLE OF CONTENTS Summary of the Offering Risk Factors Terms of the Offering Plan of Distribution Proposed Activities Additional Assessments Allocation of Interests Use of Proceeds The Initial Offerings Participation in Profits and Losses and Distributions Compensation and Benefits to the Managing Partner and its Affiliates Management Conflicts of Interest Prior and Current Activities of Managing Partner and Affiliates Responsibilities and Indemnification of the Managing Partner Tax Aspects Competition, Markets and Regulation Summary of the Partnership Agreement Other Matters Related Party Transactions Financial Condition of the Partnership Legal Proceedings Definitions Exhibits: (these attachments are general in nature) A Agreement of (Type of Partnership) B Geological Reports C Forms of the Turnkey Contracts D Form of Operating Agreement E Subscription Documents A properly prepared Memorandum will always protect the Issuer who is making the offering, but it should also be fair to the investor. The Investor is the life-blood of any oil and gas company. Without the Investor, the company ceases to exist. Any well constructed Memorandum should be constructed to be fair to both parties involved in the drilling program. It is unfortunate that many potential investors fail to read any of the material in the Memorandum before they purchase working interest in the program. Many companies are hoping that is the case, because they may have prepared a Memorandum that is inadequate as to "Full Disclosure". Alway remember, that when you sign the contracts, you are agreeing to all of the terms in the memorandum. When you purchase Working Interest in a drilling program, make sure that the investment is registered with your State Securities Division. Remember that all companies are required to file a copy of the Memorandum with State Securities Agencies in your state within 15 days of your purchase. There are a few states that do not require this registration. The memorandum that is submitted will be scrutinized by that State Securities Agency, thus giving some validity to that Memorandum's construction. Ownership in Oil and Gas Wells can be extremely rewarding, but you must take your time and read the the Memorandum. # # # Fourteen years of experience in Oil and Gas Direct Participation Programs. Extensive experience in Geology, Leasehold Acquisition, Securities, Production, Drilling, 3D Seismic Interpretation. Funded 45 Million dollars in Venture Capital for Horizontal and Vertical Drilling Programs End
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