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Direct participation offers the investment
partners more than a conventional capital investment. It is the
acquisition of a claim to a share of proven oil and gas production
commensurate with the value of the amount invested. The investment
is either in verified, already developed and producing projects
(so-called PDP projects) or in expansion drillings
to an already producing field, but never in high-risk exploration.
By investing in the projects of AMTEX Oil & Gas Inc. long-term,
calculable returns will be earned.
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Recently, AMTEX Oil & Gas Inc. has focused to
a large extent on expansion drillings in the Barnett Shale
formation in Wise County, Texas, and has developed a unique finance
model. It appeals on the one hand to U.S. investors who, in the
first instance, seek high, immediate tax write-offs and, on the
other hand, to foreign capital investors who require negligible
risks and are profit-orientated.
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The AMTEX finance model provides for the group
of U.S. investors to take the much bigger risk as they will finance
all of the intangible drilling costs, whereas the group of
foreign investors acquire the mineral rights (“lease”) and finance
the completion. However, a well will only be completed after all
participating partners, including independent geologists, found
the drilling successful. Until such a time the majority of the foreign
investors’ funds are kept in an interest-earning trust account.
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