What are the risks?
- The risk involved in searching for oil and gas reserves has been greatly reduced due to technological advances, such as 3-Dimensional seismic data and modern
completion techniques, however, there are inherent risks that should be recognized. well
- Some risks are generally classifiable as unpredictable; natural events such as oil not present in the reservoir, the reservoir
isflooded with water or the reservoir does not allow the oil to flow.
- Wells may not produce enough oil or gas to recover the cost of drilling and completing them.
- Every venture is entered into using estimates of the total cost to drill and complete a well. These estimates are drawn from our combined years of experience and with input from our service providers, however, even the best of estimates might not cover unexpected expenses such as drilling into a void or cavern into which we lose a large quantity of drilling fluid that must be replenished. Because we do not offer “Turn-Key” drilling programs, the extra cost of an event like this must be borne in pro-rata share by the working interest owners. Likewise, any savings in the cost of drilling the well will be shared by our partners.
- The environment is of concern to Ranken and should an accident occur that might damage the environment, an oil
spillfor instance, we will be quick and thorough with our remediation effort. If a part of that expense is not covered by our insurance, it must be borne in pro-rata share by the working interest owners. In this regard, in the years Ranken has been operating we have often been inspected by representatives of environmental agencies and we have never been cited on an environmental issue, in fact, we have been commended for our efforts.
- Although Ranken has been successfully operating since 1986, the past success of our company does not necessarily guarantee success in the future, in spite of our best efforts.
Oil and Gas Investing Tax Breaks?
Why Drill Vertical Wells?
Why Do Vertical Wells Deviate?
What about Wind Power?
What about future fuel supply?
Global Energy Demand and Competition?
Ranken Energy Corporation offers direct oil and gas investment opportunities that enable investors to participate in the potential cash flow and the unique tax benefits associated with oil and gas investments. Investing in oil and gas is highly speculative and could result in substantial losses. The information contained in this website is for informational purposes only and is not a solicitation to buy or sell any securities. Information on this site is not intended to be used as investment or tax advice. Consult your investment advisor or tax advisor concerning the current tax laws and effects on your personal tax situation.