Share this story
Close X
Switch to Desktop Site

Look-before-you-leap questions

Potential investors in oil and gas ventures should become familiar with the following tax and economic questions to help hedge the investment risk with increased awareness:

* Does the structure support the deduction of intangible drilling costs for limited partners?

About these ads

* Will prospects be identified and drilling start in 1984?

* What assumptions are being made as to future price trends?

* In programs stressing gas production, what are the supply/demand factors? Is there an assured market? And, is there a gas distribution system available?

* Is sufficient acreage acquired to spread exploration risk?

* What is the mix of exploration and development drilling?

* What economic return does the promoter anticipate?

* Are the drilling costs and overall arrangements competitive?

Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.