Drilling Partnerships

Be vewy vewy careful

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i would think if it was such a "good thing" they would use their own money or find a way to borrow it, to reap all the rewards and not have to share, just my opinion

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Ding Ding Ding, precisely.

I evaluated a couple of these prospects for my dad, and they were quite sketchy. The recovery estimates were optimistic, and their plan was basically to drill and "sell the reserves". When I asked about different techniques to optimize prodution, they did not seem interested.

Supposedly, some of the worst companies pull together partnerships for drills that have virtually no chance of success. That way they can sell more than 100% interest without having to worry about payouts on the back end (and keep the extra capital for themselves). Also check out the fees that the companies take off the top before it is even drilled.

Beware!

Listen to me and listen too me good.

Run like hell!

These are almost all shams/dry wells. There are several companies in Bowling Green, KY involved in these(they all sprang up from the same sewer way back when). I did some work with one of them about five years ago. They were so slimy I felt like I needed to bath in rubbing alcohol after leaving their offices.

After my project in KY, I did some research into them and my experience was pretty much par for the course.

you may also want to look at where you are investing, the CPA's I work with frown upon any type of LP's b/cof the posibility of pushing yourself into self employment taxes.