Frequently Asked Questions
For any other questions please send inquiries from the contact page.
HOW DO I INQUIRE ABOUT INVESTING?
Potential investors can reach out to Harris Energy Group by calling us directly or emailing us at firstname.lastname@example.org, or filling out our investment inquiry form in the link below.
What is fracking and is it involved in this process?
Fracking, or hydraulic fracturing, allows companies to produce more oil and natural gas. The process involves injecting water deep into the ground to crack rock, which allows more oil or natural gas to flow.
Although fracking can be very beneficial, it is not always a necessary treatment for every well. The need for fracking can largely depend on the location of the well, the type of formation production is expected to be achieved, as well as the method at which the well is drilled.
For more information about fracking, please contact us.
WHAT IS THE DIFFERENCE INVESTING IN A PUBLIC VS. PRIVATE OIL AND GAS COMPANY?
Public investments, such as corporate stocks, Master Limited Partnerships (MLPs), and energy-related mutual funds are where investors share market-related growth potential through a publicly traded company or a group of companies. Public investments do not allow the investor to directly benefit from newly established production on a per barrel, or BOE, basis.
Private Investing, such as investing with Harris Energy Group, allows investors to directly own a stake of the revenues potentially generated from an oil and/or gas well. This allows investors to potentially gain higher returns as well as numerous tax benefits afforded to companies and individuals who directly invest.
Investors who invest in a public company would have to sell the stock in order to gain back their principal investment. By directly investing in a private company, who oversees the production of the well itself, investors have the potential to gain back their principal investment, while continuing to own the asset, for the duration of its production life.
Deciding what type of investment may work for you will generally depend on your personal investment goals and objectives.
WHY DO I NEED TO BE AN ACCREDITED INVESTOR?
The SEC states that under rule 506(c) issuers can offer securities through means of general solicitation, provided that: all purchasers in the offering are accredited investors, the issuer takes reasonable steps to verify their accredited investor status, and. certain other conditions in Regulation D are satisfied.
WHAT IS AN ACCREDITED INVESTOR?
An accredited investor is someone who earned more than $200,000 annually for the past two years, or earned more than $300,000 annually, combined with their spouse, for the past two years, or has a net worth of at least $1 million (solo or combined with their spouse) excluding their home.
WHAT ARE THE RISKS THAT ARE ASSOCIATED WITH INVESTING IN OIL AND GAS?
There are varying degrees of risk in all investments, including partial or complete loss of capital. Understanding these risks can occur with any investment, direct oil and gas investments are no different. Even the largest oil companies are not immune to dry holes, which are very much a part of the industry. Every oil and gas company has their own individual risk tolerance.
At Harris Energy Group, we have a very low risk tolerance. Harris Energy Group has chosen to focus its resources on developing proven undeveloped reserves in geographic areas with a high drilling success rate. Focusing on these productive oil and gas fields maximizes the potential for successful returns while minimizing risk. Please contact us for a more detailed discussion directly involved with our oil and gas opportunities.
DEVELOPMENTAL VS. EXPLORATORY DRILLING
Harris Energy Group, LLC does not explore nor drill in unproven areas. The company’s specialty is to further develop existing fields using horizontal drilling and utilizing technologically advanced well completion techniques to maximize the potential rate of return. There is a significant difference in the risk level relative to the specific type of oil and gas investment opportunity.
A development well is an additional well drilled to further develop a proven field. Generally, a single well is only capable of achieving production from a radius of 20, 40, 80, 160 to 320 acres around the wellbore. The drilling of additional wells is needed to produce oil and gas beyond the productive range of a single well. Development wells are drilled to efficiently drain a reservoir and are generally considered less risky than exploratory wells.
An exploratory well is a well drilled in search of oil and/or gas in an unproven area. Exploratory wells have high risk but can produce potentially greater returns on investment by discovering significant reserves.