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indiv_art.gif (9521 bytes)For discerning individual investors, families and private trusts, we can create custom-designed oil and gas investment vehicles.
Few types of investment can provide as many benefits to the individual investor as oil and gas programs can. Carefully designed and properly structured oil and gas programs can provide US tax deductions, a stream of long term income that is at least partially tax free, and build-up of equity value that can ultimately be realized as a tax-advantaged capital gain, to name a few examples.

IEN, as a well known business development consulting firm, is in an ideal position to give the individual investor access to high-quality investment projects that otherwise are not typically available to those outside the industry. This is because of the vital flow of opportunities that we see daily, as a result of our wide range of contacts within the oil and gas business. These contacts spring in part from our private database of over 15,000 oil and gas companies in North America, a database which we constantly update, and from our ongoing program of outreach to the oil and gas industry, through our Newsletters, Seminars and Workshops, Conferences and Targeted Direct Marketing. When promising situations come to our attention, we can quickly assess the merits of the project, and then do in-depth due diligence to make sure that all the proper components are in place to assure the investor sound opportunity.

We have, for example, drilling programs that involve low levels of risk - development drilling in areas where success rates are extremely high and where producing wells tend to have very long lives. We also have programs that combine low risk projects with some of higher risk, for those who are more aggressive. We also have oil and gas programs that involve no drilling whatever, such as mineral leasebanks, producing oil and gas properties, and equipment leasing.

Drilling Programs
Drilling programs designed for low risk and predictable returns are available. Currently, such programs focus on the development of natural gas reserves, in such proven areas as Northwestern Pennsylvania, which has numerous fields with extremely high success rates. This kind of program is usually referred to as a development program, meaning that it is designed to further develop an already producing reservoir or
geologic formation.

Balanced risk drilling programs, which feature a majority of low-risk projects mixed with a smaller percentage of moderate-risk prospects - giving the investor the assurance of downside protection with the possibility of higher-than average upside potential.

Non-Drilling Programs
As well, we have non-drilling programs that do not depend upon drilling for a return on capital invested. These include programs organized to purchase existing producing properties, some of which have the potential to be further developed by drilling additional locations on the properties, or upgraded by improving the existing wells.

Other non-drilling programs include projects for reworking existing wells that are now marginal. Reworking usually means replacing old equipment, removing the build-up of paraffin or other matter in the well, or other measures that can be taken by a petroleum engineer. Such reworking projects can be accomplished for much less money than drilling a new well and can result in a rapid payback of capital invested.

Lease banks are a little known alternative to drilling program, usually available only to oil and gas insiders. A lease bank is a program organized to purchase mineral rights to a particular property and hold them for an operator prior to drilling. A lease bank allows the operator to conserve working capital while preparing a drilling program; when the drilling program is funded, by other capital sources, the operator repurchases the lease from the bank. The lease bank receives back its cost plus a premium equal to an interest payment, and keeps an interest in any oil and gas production that occurs on the leasehold.

Equipment leasing programs involve leasing such items as well completion equipment and gas gathering, gas processing and pipelines to operators. The operator purchases or leases such items only after a well or wells have been completed and are ready for production - in other words, the risks associated with drilling have already been taken.

For discerning individual investors, families and private trusts, we can provide high-quality investments that we are currently working with, or we will create custom oil and gas investment vehicles to fit specific needs and objectives. Such investment programs can be focussed on current income, long-term capital gains, or a blend of the two, depending upon the client’s situation. We can also design programs for those who are comfortable with various levels of risk, in a balanced risk portfolio of investments.

It is often said that profitable investing is a matter of timing. We agree, but in an industry as huge as the oil and gas business, there are so many niches that the timing is always right for one or more of them. But you do have to know where to look and how to access those opportunities. And that is what we have been doing for many years.

If you, or family trusts that you manage, could benefit from the many avenues of opportunity in oil and gas, please contact us for further information.

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