What are mineral rights, and how can you make money by investing in them? Managing Partner Jack Nichols explains. The material herein does not constitute an offer to see nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors and where permitted by law. Investments in security are not suitable for all investors who can withstand the loss of their investment. Investors should perform their own investigations before considering any investments and consult with their own legal and tax advisors. Past performance does not guarantee future results. This presentation is copyrighted material and only for the use by Redhawk Investment Group and its affiliates.
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Much of what we do at Redhawk Investment Group centers around educating people about, and helping them to invest in, advantageous oil and gas investments, which include drilling programs and the ownership of mineral rights. Both types of investment projects have their benefits. We believe in the long-term benefits of owning mineral rights. But, there are also benefits that come along with investing in a drilling and development program. Here’s a brief overview of some of the positive features of each option. Benefits of Investing in Mineral Rights Some of the most important incentives for you to have mineral rights in your financial portfolio include receiving an upfront cash bonus to sign a lease, plus receiving 20 to 25 percent of the gross revenues monthly from production, and not being financially responsible for dry holes or any operating costs -- and, rights never expire. With benefits like these, on top of the limited amount of risk, it’s no surprise that many accredited investors are choosing to go this route when expanding their financial horizons. Imagine: Successfully investing in mineral rights could make a difference in your life and finances, plus contribute to the financial well-being of family members for generations to come. Mineral rights can be gifted or passed on, creating a lasting financial legacy. Benefits of Investing in Drilling Operations Investing in drilling production and operations offers a whole separate set of benefits. Drilling operations afford the chance for aggressive investment returns on healthy wells, with monthly revenue for the lifetime of the well. Along with a monthly payout, this type of investment also gives the investor the right to tax deductions due to intangible drilling costs. In a broader outlook, this kind of investment doesn’t just affect the investor personally. It has a ripple effect that provides jobs to others, furthers energy independence, and leads to the exploration and development of other wells in top-producing fields. Finding the Right Fit Here at Redhawk, we believe that both mineral rights and drilling operations can be lucrative and lasting investments for the right types of accredited investors. We also believe in being knowledgeable and informed before putting your hard-earned money in any fund. Let us help you find the right path as you invest. Whether you’re investing for the first time or a seasoned investor, we can help you create wealth that lasts and lends itself to your portfolio goals. Interested? Please don’t hesitate to reach out to us and request more detailed information. The material herein does not constitute an offer to see nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors and where permitted by law. Investments in security are not suitable for all investors who can withstand the loss of their investment. Investors should perform their own investigations before considering any investments and consult with their own legal and tax advisors. Past performance does not guarantee future results. This presentation is copyrighted material and only for the use by Redhawk Investment Group and its affiliates. Oil and gas investments, particularly direct participation investments such as those offered through Redhawk, provide investors with hard-to-beat opportunities for profit within an industry that is currently experiencing a resurgence in productivity and profitability. Enjoying the profit and other benefits available from oil and gas investments requires investors to make wise choices regarding the companies they invest through and the projects they invest in. What follows is a look at 5 of the most important factors to consider when choosing direct participation oil and gas investments. When choosing oil and gas investments, follow your own financial and risk preferences. Most all direct investments in oil and gas come with a certain level of risk as compared to investing in stocks. It is the potential reward, tax benefits, and other advantages that make higher level of risk worthwhile to the investors who choose this path. However, even within direct investments, there are varying levels of risk, and financial commitment, possible. For example, mineral investments typically have lower risks associated with them than oil and gas drilling investments due to the fact that mineral rights owners incur no operating expenses nor run the risk of dry holes. Other projects, such as oil well investment opportunities, may possess a slightly higher risk profile. Likewise, some projects require more money upfront from investors than others. Understanding your own financial and risk preferences, and choosing oil and gas investments that are in keeping with those preferences, is a wise first step in making these decisions. Doing so will allow you to enjoy the benefits of these investments within an environment in which you are financially and personally comfortable. Select oil and gas investments that provide reasonable profitability assessments. When you choose direct participation oil and gas investments, you may encounter some proposed projects that are being touted as remarkably profitable. For example, you may find a project that promises unrealistic yields within just a few years. When evaluating projects for potential investment, the best approach is to view these remarkable projections with a fair amount of skepticism. Instead, select oil and gas investments that come with reasonable assessments of the project’s profitability. This means that the company overseeing the project should be able to provide you with thorough evaluations of the project’s risks, anticipated profits, and timeline for the realization of these profits. In addition, you should see projections that are realistic, reasoned, and backed by data. If you are investing in a project currently underway, you should also be able to access the project’s past yields and productivity. Choosing these types of projects can help you to reduce your risk of investing in a project that fails to meet its projected yields, as well as give you insight into a company’s integrity and competence within the oil and gas investments field. Choose oil and gas investments in high producing areas. Before committing to specific oil and gas investments, consider the areas where the projects are taking place. For example, if you are taking advantage of oil well investment opportunities, look for ones that are in geographical areas that are most likely to yield producing wells. Does the geography make it probable that your investment will pay off? Be sure to exercise your due diligence. In particular, consider projects in up and coming areas such as Oklahoma SCOOP and STACK plays. And find out from the company with whom you are investing why they feel that this particular project has a high likelihood of succeeding. They should be able to provide you with information to support their reasoning that this project will meet expected yields. Selecting projects based in part on where they are taking place can reduce your risk of investing in a project that falls short of its predicted yields. In addition, doing so can allow you to find oil and gas investments that will not only produce expected yields but do so for the long term, maximizing the profitability you receive from your investment. Select a company for your oil and gas investments that has an established background. When selecting a company to invest through for your oil and gas investments, it is important to find a business that has a proven track record of success. For example, look at their last several similar projects and evaluate whether these projects met expectations, yielded producing wells, and delivered profitability to investors. New companies or those who have struggled to deliver high-performing investments in the past may not be the best companies to choose as you move forward with your oil and gas investments. Instead, reliable and proven companies offer a much more stable avenue through which to make your oil and gas investments. For example, Redhawk has implemented almost $170,000,000 worth of high-quality alternative investment projects since mid-2014, demonstrating an ability to identify and bring to fruition profitable oil and gas investments for participants. Consider the tax advantages available through oil and gas investments. Investing in oil and gas in the U.S. often comes with significant tax advantages (and other benefits) that require consideration when you are choosing your oil and gas investments. An oil well investment opportunity, for example, may initially seem to come with high capitalization requirements. However, tax benefits that allow you to deduct certain expenses can reduce the overall amount of money you end up investing, as well as reduce the amount of money you actually stand to lose if the investment does not perform as expected. By taking all of the potential advantages into account, and by consulting a financial professional regarding potential tax benefits, you can more confidently choose oil and gas investments that are right for your risk preference, financial comfort level, and profitability desires. Choosing oil and gas investments means considering all of the factors that go along with those investment opportunities. By following your financial and risk preferences, choosing investment opportunities that have reasonable profitability assessments, selecting investments in high producing areas, selecting a company with an established track record, and considering the tax advantages of each opportunity, you can select investments that should benefit you in the long run. The material herein does not constitute an offer to see nor is it a solicitation of an offer to purchase any security. Offers will only be made through a private placement memorandum to accredited investors and where permitted by law. Investments in security are not suitable for all investors who can withstand the loss of their investment. Investors should perform their own investigations before considering any investments and consult with their own legal and tax advisors. Past performance does not guarantee future results. This presentation is copyrighted material and only for the use by Redhawk Investment Group and its affiliates. |
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