Oil Well Re-works vs New Drill

I am somewhat new to Mineral Rights Forum and have kept to myself in the shadows.. I have read many great comments from all of you.. I have been purchasing working interest in oil re-works and have been involved in 1 new well.. I have only done this since Aug of 2012 and happy to say my first venture is producing.. Two others ventures are in the works but all of the projects have been with the same company and all in Tx..

My first question is do I stay with this small company (all my eggs in one basket) or find another..

My second question is Re-works or new wells.. What is your thoughts..

I am looking for your experience good or bad and if possible names of quality small oil companies looking for investment partners..

Thanks in advance


If the company you are dealing with is competent, I see no problem with continuing to deal with them alone. I do hope you have spread your risk over several walls so one failure does not wipe out all of your gains. Good luck in the future.


RW offers you some good advice in that spreading your investments would be very smart as there most likely will be bumps in the road. I know an individual in Austin who is a very experienced petroleum engineer and has practiced before the Texas Railroad Commission for many years. Part of his expertise is dealing with re-working older wells and would provide some very valuable information in your situation. I have sent you a friend request so we can discuss this matter further.

To invest with only one company would not be wise at all even if it is spread out in many of their wells. I see good companies file bankruptcy all the time and I wouldn't want to invest with just one company as it is a good way to lose everything. I have interest in wells that have been shut in and stuck in limbo forever because a long standing great company had some bad luck, made some bad decisions and were forced to file bankruptcy.

Sometimes it's better the devil you know than the devil you don't. I guess you could get caught flat footed if you did no homework and paid no attention. If a company goes bankrupt, would you call them competent, I wouldn't. I suppose you could be defrauded by criminals like the old ENRON, there is that element out there, but if you don't know that this is oil and gas and there is never any guarantee, you shouldn't be in it to begin with. Some people have problems because they never do any homework and then they look for someone to blame for their shortcomings.

Even the best company can get caught when things go south, there were thousands in the oilfield back in the 80's that did just that and had it not been for the government you'd have seen most every bank in the USA do the same a few years ago. To suggest that most all the large banks in the USA that almost went under before the government stepped in were not competent and that they would have known by their homework is plain nonsense. If one really thinks "doing their homework" can 100% spot companies that are and are not competent or some how prevent losing money with any one company then they are foolish. Some people believe they know everything, they are easy to spot as they are everywhere and think they are always right. If you invest all in one well or one company, your foolish, but I am certain there is someone, a know it all, that can twist that around to make sense in their eyes.

Speaking of twisting, who said one well? I specifically recommended to not put it all in one well, twisting? As for Savings and Loan bailout, yes you are not competent if you lend money you do not have which is what happened there. Once again the excuse was everyone was doing it and the answer as always, as mom said, if everyone jumped off a cliff, would you do it? I get tired of people who always say it wasn't my fault or there was nothing that could have been done, when if you actually think about it, there was. Just in case there is someone who did not get it, do not loan money you do not have. Is that twisting something, or is it common sense?