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Participation in oil and gas exploration and production ventures carries high degree of risks along with its potentials. Potential Partners should be aware of these risks. Regal Energy’s management focuses on mitigating these risks by the utilizing a team of experienced geologists, engineers, and technology experts. However, difficulties in the drilling phase or completion process can occur that result in the termination of the project. Even as knowledge and technological advancements have spurred our successful completion rate, a dry hole always remains a distinct possibility even in a field such as the Barnett Shale where a multitude of wells have been drilled without any reported dry holes. That’s why researching and knowing your Managing Venturer as well as location is so important.
Grounded in Exploration and Production
Experience on the resumes of all parties offers significant insight into the integrity of the people with which you are joining in partnership. Investigate and assure yourself of the character of the organization in which you are investing. Does their approach support a vision of the future and the means to make it a reality based on concrete, historic evidence?
Who do you want as a partner? A company and managing venturer whose interests are devoted to the industry, who supports a long-term commitment to exploration, and is one who employs the management due diligence to quickly, efficiently and cost-effectively bring oil and gas wells to completion to affect revenue flow for their investors. These tenets are part of Red River Securities and Regal Energy’s core strategy.
Attain Confidence through Disclosure
Ensure that a partnership is supported by a formal, legal investment document; a Confidential Information Memorandum, (CIM). This document defines and details the investment objectives, inherent risks, managing venturer, and venture member obligations. The CIM should be made available to you, as a serious, qualified investor, by the licensed broker/dealer who is consulting with you on your investment participation. Personally review the CIM, discuss it with your accountant, and ask questions about it with your licensed registered representative to gain a full understanding of the value of your commitment. Also be certain that if there is a contingency offering that a formal escrow account has been established to hold and monitor funds until the contingency has been met.
With Red River Securities as a member of FINRA, the Financial Industry Regulatory Authority, partners may gain another layer of protection and security when dealing with a licensed Broker/Dealer and its representatives.
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N E W S & B U L L E T I N S
Natural Gas
The Facts on Hydraulic Fracturing
Chemical Composition – of Fracing Additives
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Disclaimer: This content is provided for informational purposes only. Information herein is not intended to be a solicitation of any kind. Nothing herein shall be construed as tax, legal or accounting advice. Investing in oil and gas is highly speculative and could result in substantial losses. Potential investors should consult their attorney, accountant and financial advisors before investing in oil and gas. Past performance is not a guarantee of future performance or returns.
- © 2010 Red River Securities, LLC. All rights reserved.

