The old saying is true: “You make your money when you buy a property.” You can rarely go back to a seller and demand your money back for an oil and gas property that didn’t produce enough or produce at the rates you needed to make the project profitable.
You put in the work on the front end to make sure your project meets all of the technical, legal, regulatory and environmental parameters that will allow you to drill and complete the well with enough margin to meet your goals.
While there is a lot of science behind the due diligence required before buying an oil and gas property, there is also an art to this step of the process. Experienced geologists and petroleum engineers can spot a bad deal from a mile away, which would keep you from spending too much money running down an opportunity that doesn’t make sense for your portfolio of oil and gas properties.
Never forget that study is cheap. Spending money to thoroughly vet a property before you make the deal is a lot cheaper than spending money on a dry hole after you add the cost of drilling, completion and all the associated costs with those operations.
The cowboys are all but gone from the oilfield. The people who are making money in the modern oilfield are the professionals who understand the risks associated with the upstream oil and gas industry as well as how to mitigate those risks. Even the modern wildcatters understand that they are playing a game based on science and technology, not one ruled by luck.
Before you buy your next oil or gas property, let the experts at SPRI do your due diligence and help you get the biggest return on your investment. For a free consultation, email us at email@example.com.