Participation in oil and gas development projects can yield significant, tax-advantaged business opportunities. However, businesses and private participants should only work with oil and gas companies that have performed the necessary due diligence before beginning a project. Due diligence should be conducted in three areas, beginning at the mechanical level. Oil and gas operations require an extensive amount of machinery to drill thousands of feet beneath the earth’s surface and obtain the natural resources trapped there. The smallest malfunction in an on-site machine can result in weeks or months of lost drilling time. Similarly, the sites themselves must be thoroughly researched. Risks can be mitigated by focusing on areas with successful drill rates and previously established operations, but due diligence must be performed before every project begins to ensure that the area is still valuable and drillable. Finally, some due diligence must be performed on the part of the participant. Participants should only work with companies and individuals they trust and who have demonstrated past success in oil and gas exploration, development, and drilling.
Sentry Energy Production, LLC, is a privately held company devoted to the exploration and development of gas and oil reserves. Projects only begin after the proper due diligence is performed. Sentry Energy Production, LLC, consistently seeks out partners looking to diversify their portfolios.
Participation in oil and gas development projects can yield significant, tax-advantaged business opportunities. However, businesses and private participants should only work with oil and gas companies that have performed the necessary due diligence before beginning a project. Due diligence should be conducted in three areas, beginning at the mechanical level. Oil and gas operations require an extensive amount of machinery to drill thousands of feet beneath the earth’s surface and obtain the natural resources trapped there. The smallest malfunction in an on-site machine can result in weeks or months of lost drilling time. Similarly, the sites themselves must be thoroughly researched. Risks can be mitigated by focusing on areas with successful drill rates and previously established operations, but due diligence must be performed before every project begins to ensure that the area is still valuable and drillable. Finally, some due diligence must be performed on the part of the participant. Participants should only work with companies and individuals they trust and who have demonstrated past success in oil and gas exploration, development, and drilling.
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Energy strives to provide its partners with oil and gas opportunities that include performing wells and wells with strong potential for performance. Some people who could benefit from such opportunities hesitate because they are confused about the complicated definition of mineral rights. Due diligence remains one of our highest priorities at Sentry Energy; we utilize the best legal resources to determine ownership of mineral rights. The subject of mineral rights encompasses a number of details involving land, known legally as real property.
Ownership of land implies the legal right to decide what happens to such elements as water and timber on its surface or coal or other mineral products beneath the surface. However, complexities of the law dictate whether a person actually possesses these elements outright and has the ability to legitimately sell them or sell or lease future access to them. Freehold ownership of land states that a person or organization owns that land until conducting a sale of that property. Fee simple ownership gives a real estate holder absolute entitlement to every element on the land or under its surface; the term “fee” stems from feudal origins and does not connote a payment or charge. Such a title allows an owner to sell the property or access to its features, including water, timber, oil and gas, coal, precious minerals or those used in manufacturing. The owner also enjoys the legal right to lease the rights to such elements over a period of time. For instance, some people rent the right to harvest timber or hay from landowners for a set number of years; others lease the oil and gas rights or mineral rights. An oil and gas or mineral lease gives the tenant or renter the right to drill or otherwise obtain these products for a certain amount of time, as well as allowing the tenant adequate access to the land to acquire the products. Such access generally entails placing an easement from the road to the point of excavation or drilling, as well as requiring sufficient land to accommodate extraction of the mineral products. If the renter does not utilize the oil and gas or mineral rights during the lease period, the rights revert to the owner. About Sentry Energy: Sentry Energy explores for oil and natural gas and uses state-of-the-art drilling and excavation methods to generate the best possible production and returns for its partners. |
Sentry Energy ProductionAs the U.S. government and its residents attempt to become less dependent on foreign oil and gas, oil and natural gas exploration and development firm Sentry Energy Production LLC seeks out reserves in the most efficient manner. Archives
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