Why Invest in Oil and Gas Ventures? A Window of Opportunity

* HIGH FINANCIAL REWARDS, i.e., several projects offer:

Return of Capital in 6 to 12 months
Better than 10 to one Return on Investment
Greater than 50% Annual Rate of Return

* RISK

Average well is less risky than 10 years ago. Several projects have a probability of success better than 90%..
Available projects would be economically attractive if oil price would fall 50%.

* TAX BENEFITS (click here for more Information)

Drilling is the very best tax advantaged investment (Newsweek).
Congress gives tax breaks to individual investors that are not available to large companies.
100% tax deductible ... 65 to 80% can be written off in first year.
Up to 100% tax-free income.

* DRILLING PROSPECT AVAILABILITY

Small drilling prospects are better than ever (and there are more of them).

* COMPETITION

The big money has gone offshore and overseas, because there are too few easy-to-find big oil fields remaining.
Over 10,000 oil companies have left the arena since 1982.

* LEASE COSTS

Oil companies are not as anxious to renew expired leases (so lease costs are low).

* DEMAND/CONSUMPTION (click here for more information)

Petroleum demand is doubling about every 10 years.
U.S. oil stock piles are at 27 year low. (14 days of domestic consumption)
Click here for Oil Demand/Consumption Graphs

* OIL PRODUCTION TREND
US output is at a 35 year low
Over two-thirds of domestic oil wells are classified as marginal (avg = 3 bbls/day).
Imports are now over 60% (imports were 30% just before the oil embargo).

* PRICE FORECASTS

Long range projections are up.

Click here for Oil and Gas Price Graphs

* DRILLING COSTS

Rig activity is lowest in 50 years, therefore, drilling costs are low.

* TECHNOLOGY

Recent advances in oil finding technology has improved recovery and reduced risk.
Some companies report 85% success on wildcat wells.

* ENVIRONMENT

Sierra Club endorses natural gas
Combustion by-products are carbon-dioxide and water.

* GOVERNMENT

Encourages domestic drilling with special tax breaks.
Mandating natural gas usage over oil and coal.
Natural gas is now deregulated.

* MONEY CRUNCH

Traditional sources of drilling money are no longer available (which is a bonanza for independent investors).

The Energy Exchange, Inc

Telephone: (281) 684-3557

Fax: (281) 966-6958

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