Partnering with us
Oil and Gas Investments are not suitable for everyone but, when appropriate it can be a beneficial asset class to add to your portfolio. It can have an inverse relationship to other asset classes, helping to lower overall portfolio volatility. Who you partner with in our industry can make all the difference in whether you are successful or not.
Suitable for You?
Investing in oil and gas has a high level of risk and uncertainty. It also has the potential to be extremely profitable and rewarding. Not everyone is a good candidate for direct participation programs. You should carefully weigh all the risks before investing.
The requirements to partner with Western Energy Group are that you either be an industry partner or and accredited investor as defined by the U.S. Securities and Exchange Commission (SEC). Click on the link below for the SEC’s definition of an accredited investor.
There are many risks associated with investing in Oil and Gas. There is the risk of drilling a dry hole, having a mechanical failure, falling oil and natural gas prices, production and mechanical issues, etc. The performance of your investment should not have any bearing on your daily standard of living. While oil and gas investments can provide substantial revenue, there is too much uncertainty to predict with any consistency the amount of cash flow or rate of return. That is the function of production levels, lease operating expenses and commodity prices.
So with all of the risks, why invest? The returns that are possible with oil and gas investing can be quite strong. It is also widely recognized that adding an alternative asset class to your portfolio can have the overall effect of lowering portfolio volatility, even though you may be adding an asset class that carries a high level of risk by itself. There are also substantial tax benefits associated with oil and gas investing. You should consult a CPA to clarify how any investment will affect your personal tax situation.
What makes us different?
If after carefully considering all the risks you determine direct participation in Oil and Gas is suitable for you, then who you partner with is a very serious decision. There are many companies to chose from, some good and some not so good. Many companies offer only drilling programs which is a very risky way to invest in Oil and Gas. If you participate with a company and a well is not completed, you have lost all of your investment save the tax deductions.
Our philosophy is this; we put packages together that include revenue from existing production. A typical package with Western Energy Group will include some production from existing wells with the ability to participate in workover, recompletions, and drilling within the field. We believe there is much less risk than the “all or nothing” drilling programs so prevelant today.
Another key difference in participating with Western Energy Group is that our partners become direct working interest holders in the leases. Very few companies offer this benefit, electing to create Partnerships or Joint Ventures that lump all investors together.