Choosing the correct partner for you.
Oil and gas drilling ventures are generally at the riskier end of the investment spectrum. But investors can try to limit the degree of their risk by prudent research into the company and people involved. Before you invest, carefully analyze the prospective opportunity. Examine the company and check its references. Make sure the representative and company you are considering are registered with FINRA and your state securities agency.
Although registration with FINRA and state securities agencies are usually a requirement under various securities laws for individuals offering oil and gas investments, neither FINRA nor any other self regulatory organization endorses, indemnifies, or guarantees the member's business practices, selling methods, the class or type of securities offered, or any specific security.
While past performance offers no guarantee of future results, you should evaluate the sponsor’s prior activity including financial results to investors. Always demand full disclosure, and audited financials. And then, only invest when you are comfortable with the people, opportunity and risks involved.
The following is not a complete list to consider when choosing an Oil and Gas Sponsor but some guidelines that may help.
- Length of time Sponsor has been in business.
- Has the Sponsor changed their name in the last 10 years?
- Are the investments offered through a FINRA registered Broker Dealer, as required by S E C rules?
- Has the Sponsor or Broker Dealer been the subject of any regulatory disciplinary actions?
- Has the Sponsor or Broker Dealer been the subject of any lawsuits or arbitrations with investors?
- Do they list their track record in terms of total dollars invested and total dollars returned? Not just hits or completions.
- What sort of communication do they provide partners?
- Are their K-1's correct and distributed in a timely basis?
- Do they have corporate references?
- Do they offer "Industry Deals" where a significant portion of the well is being paid for by other oil companies as opposed to all expenses being born by investors?
- Do they carry insurance for your protection?
- Does the Sponsor have independently audited financial statements?
Champion Group welcomes your questions.
At The Champion Group, we want you to ask us these questions—and any others that come to mind. When you’re contemplating an oil and gas investment, your most important consideration should be who you’ll do business with.
Combined Resources Group
Your exclusive agent for Combined Resources Group (CRG).
We believe Combined Resources Group (CRG), an affiliate of Champion Group, has been one of the most active sponsors of oil and gas drilling partnerships in the U.S. since 1986.