What are some of the negatives regarding oil well investments?

What are the barriers to entry?
November 9, 2016

What are some of the negatives regarding oil well investments?

Natural disasters can affect a site’s ability to perform; however it is rare. Lightning recently struck the Delhi facility causing major damage. Although the insurance reimbursement will pay for a facility that is better than the one destroyed, a month of revenue was lost due to the strike. Trucks have been known to haul non-approved fluids into the facility, (i.e. drilling mud) which can plug the well and cause non-performance while it is being repaired. Safeguards are in place to prevent these events (i.e. the ID card system). Of course, there may be issues related to equipment failures, which can generally be repaired but cause non-performance while being repaired. Please refer to the Private Placement Memorandum for a complete list of the risks associated with investments.