As a follow up to my previous posts on risks in investing in oil to a dismaying report about the end of peak oil production I thought I’d tell everyone about the current deal I’m working on.
I’m helping put together a deal to uncap an old well that was capped in the eighties when oil was trading at under $10 per barrel. At its current value of $60/barrel its now highly profitable to ucap it. I had a meeting today with my partners in the deal and an attorney who represents an inventor. The inventor put together something called an Atomic Resonance Frequency Device[or something similar] that gives you a 3D image of the amount and depth of oil in the ground. Apparently its 99% accurate. Well, they’re flying out to the oil fields in Texas next week to try and see if our well is any good.
One thing that worries me is the amount of personal liability if we run into environmental issues. There’s no hiding from the EPA. But the potential rewards in this deal make the investment definitely a risk worth taking. Anyway, we’ll find out more info on it late next week. But so far I’m pretty excited about it and think oil is definitely worth exploring [yes the pun’s intended].
I’m also leaving for India this weekend and I’ll be checking out the investment scenario there too. Apparently the Indian Stock Market and also real estate market are BOOMING. I had to put that in caps to emphasize the amount of booming taking place!