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FAQ Page

How does a person invest in oil and gas?

There are many ways to invest in oil and gas including buying stock directly in an oil and gas company, oil and gas mutual funds, commodity trading, and investing directly with independent oil and gas companies like Reef.

What are the tax benefits for investing in oil and natural gas?

The tax advantages for investing in an oil and gas could potentially be significant, but each investor's situation may be different. The three main groups of tax deductions are intangible drilling costs, tangible drilling costs and lease costs. Usually, intangible drilling costs can be written off within the first year.

What are some disadvantages of investing in an oil and gas program?

Oil and gas programs involve risks. Drilling explorations wells are more risky than development wells. Also there are risks such as declining energy prices and the risk of drilling a dry hole. By drilling an unconventional well using the latest horizontal technology and multi-stage fracturing, we can potentially reduce the risk of drilling a dry hole.

What are some unconventional plays in the U.S.?

Shale plays, often called unconventional plays, have been known to produce oil and natural gas for many years, but with advances in new horizontal drilling and multi-stage fracturing technologies, these unconventional plays are starting a new era for oil and gas production here in the U.S. Some of the more popular shale plays in the U.S. are Bakken, Barnett, Haynesville, Marcellus and Eagle Ford. Reef Oil and Gas has interests in wells within many of these shale plays.

What are the benefits of unconventional drilling?

Some of the benefits of unconventional drilling may be: reduced drilling costs, reduced dry hole risks, sustained well life and in several cases it may increase the total production of the well.

How does an investor choose the right energy partner?

When choosing the right energy partner, an investor should make sure that the company has a proven successful track record, partners with major oil companies, employs the latest in drilling and discovery technology, and meets stringent due diligence criteria.

What is Reef’s expertise in the oil and gas industry?

Reef Oil and Gas Companies was formed in 1987 and has more than 25 years experience in the industry. Reef has a staff of Geologists, Geophysicists, Reservoir Engineers, Production Engineers and Landmen, most of which are highly-trained industry veterans with more than 30 years average experience. Reef currently owns an interest in more than 3,000 wells across the U.S.

Does Reef Oil and Gas use the latest drilling technology?

Yes. Reef Oil and Gas partners with major operators to utilize the latest in drilling technology to reduce dry hole risks and increase the likelihood of drilling productive wells. Many of Reef’s wells today utilize horizontal drilling technology and are currently being drilled with 12-38 fracture stages. Hydraulic fracturing uses a liquid mix of water and sand and is injected into the rock at a high pressure, creating fractures in the rock that allow the oil and natural gas to flow freely to the surface. According to the EIA, U.S. oil production is expected to increase 20% because of multi-stage fracturing technology.

I hear a lot of buzz about the Bakken in North Dakota. Does Reef Oil and Gas participate in the Bakken?

Yes. Reef’s strategy when evaluating properties in the Bakken is to buy existing production with upside developmental drilling opportunities. Within the last few years, Reef has taken advantage of several opportunities to make successful acquisitions in the Bakken. Choosing Reef as your partner means choosing a company that has a solid history and deep understanding of one of the most active unconventional plays in the U.S. Reef’s expertise in the Bakken is backed by our current activity, which includes:

  • • Interest in approximately 10% of the wells drilled in the Bakken
  • • Interest in more than 500,000 acres
  • • Interest in more than 500 producing wells
  • • Participation in the drilling of more than 180 wells since 2011
  • • Interest in more than 600 wells projected to be drilled within the next five years.

What is an individual accredited investor?

As amended on July 21, 2010, an "accredited investor" as defined in Section 501(A) of Regulation D under the Securities Act of 1933, as amended ("The Act") means any natural person whose individual net worth, or joint net worth with that person's spouse, excluding the value of the individual's or couple's primary residence, at the time of his purchase exceeds $1,000,000; or any natural person who had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person's spouse in excess of $300,000 in each of those two years and has a reasonable expectation of reaching the same income level in the current year.

How can I get a job at Reef Oil and Gas?

We encourage everyone who has work experience in the industry to view our available positions online. We pride ourselves on designing the right environment that promotes achievements, career advancements and outstanding employee relations. To view our available positions, click here.