Due Diligence Tips: The Operator

The Drilling Operator

In private drilling programs, the Operator refers to the company that promotes, drills, and maintains the investment prospect. There are many excellent oil & gas investment opportunities available, but even a great prospect can be a poor investment if it is badly or unscrupulously managed. The caliber of the people involved is indeed a crucial consideration.

To determine who is the driving force behind each drill program, a considerable amount of due diligence is required on your part. But it is well worth the effort. For instance, Stonehenge Capital Research adherers to a due diligence screening formula for our own investment considerations. Hence, we usually only find a small percentage of oil & gas investment opportunities that meet our exacting investment criteria. But the ones we find can be gems.

Meanwhile, among those who do not make the grade are Operators that tend to either stretch the truth, create unrealistic expectations, or commit lies of omission. Or even all of these disingenuous activities. It is therefore imperative to know when the Operator is presenting the whole truth. By way of your own due diligence, you can often determine whether or not an Operator is being ‘up front’ before deciding whether to hand over your hard-earned investment dollars.

Due Diligence Tips: The Operator

• The Drilling Operator
• Cold Callers Can Often Leave You ‘Out in the Cold’
• The Operator’s Track Record

Due Diligence Tips: The Drill Project

• Operating Costs
• Location, Location, Location
• Drilling Costs