Participation in wells

How could I get more information on the participation process? Thank you.

In general, a "regular" mineral owner is not equipped financially or industry-knowledge-wise to participate in a well. You must have deep pockets and be ready to lose every penny you put into a well. Yes, there are upsides like tax breaks and potentially good revenue, but there are many, many downsides. You need a good oil and gas attorney, a good oil & gas accountant (and you have to pay them). You will need to have drilling insurance and know that you can be sued if something goes wrong. (more payments) You need to understand if you are participating in just one well or are committed to many more after that. You need to be ready to be financially responsible for the well for the length of its life-maybe 35 years. Are you willing to pass that on to your heirs? You would be wise to put any working interest participation in an LLC or separate entity to protect your regular assets from a lawsuit, etc. etc. etc. You will need the cash upfront (unless you cut some kind of deal) for your percentage of the well drilling and then you will have to pay your share of the operating costs and the plugging costs monthly until the well dies....

Our family has been in the oil business for almost 100 years and we choose not to participate for a lot of good reasons. Maybe someone who is pro-participation will chime in with the other side.

Thank you for your input. I appreciate your response.