Brandon Davis, CEO, and Imran Khan of Swan Energy, join The Crude Life for the weekly segment Mining Money.
This week it’s all about investing in oil wells. Opportunities are plentiful right now in oil and gas and Davis and Khan explain why and how.
“There are so many ways to invest in the oil and gas business as far as oil wells go,” Davis said. “From going out and acquiring leases to buying interest in wells, to buying interest in partnerships that own interest in wells and in some cases you can buy partnerships that have interest in partnerships that have interest in wells.”
Although there are great entry level price points in the market, the two point out that it’s still the oil and gas business, so there’s a risk reward consideration.
“There is something out there for everyone, which is great. The risk tolerance and the level of which they are willing to take is important,” Davis said. “Our typical investments run around $100K, so it’s not for everyone and we generally advise people that if they can’t afford to lose that money, don’t do it.”
Khan points out that generally speaking, buying low and selling high is a good strategy in business. Current economic conditions and market indicators show there is some momentum towards positivity in the energy sector.
“Right now we’ve hit the bottom, a few months ago we went negative. We’ve been in touch with a lot of oil and gas experts and it seems the consensus is that it’s hit the bottom and we are on the way up,” Khan said. “What better time to get into an investment that to get in at the bottom and ride the wave up.”
The weekly segment called Mining Money, transitioned into the gold sector of the economy. Davis owns a gold mine and put it up for sale last year, however, with current gold pricing, he isn’t sure about selling hos gold mine.
“When we put our mine on the market it (gold price) was $1300,” Davis said. “I am not sure a good enough offer could come in at this point for us to accept it because of the price.
To listen to past Mining Money segments, click here
The Crude Life Podcast can be heard every Monday through Thursday with a Week in Review on Friday.
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