Hi Wayne,
I had a chance to see ROYL in action at the October 97 Money show in Seattle, along with a couple of other gas/oil drilling companies that offer direct working interest programs. Two were US Emerald, drilling a deep well in Texas, and Robo Enterprises, drilling for shallow gas sands in the eastern us. Have you heard of either?
I must say that ROYL would be the one I would be most comfortable with, though Robo did offer an unusual concept of a working interest pool, where you own an interest in 10 wells instead of one. So if a well or two misses, your not at a complete loss.
Robo doesn't use 3d sesmic, but instead searches through old drilling records for clues to shallow sands which were discovered but not exploited during the deeps/tight sands drilling encouraged by the tax credits available prior to 1991. As I understand it, their target tends to have a shorter life than deeper wells.
So far, I've taken the stance that I'd rather hold equity in a Co like ROYL than making direct working interest bets in companies I know little about, given my lack of knowledge in the field. Any comments? |
