Risks of Oil and Gas Investments Offered by Our Affiliates
Every investment has risks. While Oil and Gas investments offered by our affiliates can be lucrative investment opportunities, they are no exception. Before making an investment decision, investors must obtain and read the offering materials from the issuer in their entirety.
Risk Factors include but are not limited to:
- The investment product(s) offered by our affiliates may not be suitable for all investors. A representative of our affiliates can explain this in greater detail.
- The investment products offered by our affiliates are illiquid and investors should be able to bear the potential risk of the loss of their entire investment.
- There is no guarantee on returns of your investment or any rate of return, or investment profit because of the speculative nature of drilling oil and natural gas wells.
- You may not recover any or all of your investment in a Partnership, or if you do, you may not receive a rate of return on your investment that is competitive with other types of investments.
- Because some wells may not return their drilling and completion costs, it may take many years to return your investment in cash, if ever.
- New horizontal drilling techniques may be used, including methods that may not meet projections.
- Partnership distributions may be reduced if there is a decrease in the price of oil and natural gas.
- Prices for oil and natural gas will depend on factors largely beyond the control of the Partnerships and prices may fluctuate widely in response to factors including but not limited to:
- changes in the supply of and demand for oil or natural gas
- market and geopolitical uncertainty
- fluctuations in world currency markets
- government regulations
- Possible leasehold title defects.
- Participation with third parties in drilling wells may require a Partnership to pay additional costs.
Please read the disclaimer for information on additional risk factors and the section in the Private Placement Memorandum entitled “Risk Factors”: These securities are subject to legal restrictions on transfer and resale and investors should not assume they will be able to resell their securities; the investment is highly illiquid. Investing in securities involves risk, and investors should be able to bear the potential loss of their entire investment.