subject: Who Can Invest in Oil and Gas? [print this page] Who Can Invest in Oil and Gas? Who Can Invest in Oil and Gas?
Majority of oil and gas companies file for an exemption from registration with the SEC pursuant to Regulation D, Rule 506 and state regulators under similar state filings. One guideline among many that we follow as a policy is that an investor who participates in our drilling program must be "accredited" as defined by federal and state law.
Majority of oil and gas companies file for an exemption from registration with the SEC pursuant to Regulation D, Rule 506 and state regulators under similar state filings. One guideline among many that we follow as a policy is that an investor who participates in our drilling program must be "accredited" as defined by federal and state law.
An accredited investor for a Oil & Gas Investment may be defined as any of the following:
Issuer of securities being offered or sold: This applies to any director, executive officer or general partner of the issuer - or any director, executive officer or general partner of a general partner of that issuer.
Individual with a net worth exceeding $1,000,000, excluding the value (if any) of such individual's primary residence: This includes any person whose individual net worth - or any individual and his/her spouse whose combined net worth at the time of investment - is $1,000,000.
Individual with a net income exceeding $200,000 in each of the last two years or joint income with spouse in excess of $300,000 in each of those years and a reasonable expectation of reaching the same income level in the current year.
Trust with total assets in excess of $5,000,000: This includes any trust with total assets of more than $5,000,000 that was not formed for the express purpose of acquiring the offered securities. The individual purchasing these securities must have the necessary knowledge and experience in financial and business matters as well as the capability required to assess the investment merits and risks.
Organization with total assets exceeding $5,000,000: This applies to any organization with total assets of more than $5,000,000 that was not formed specifically to acquire the securities being sold.
Any entity: This includes any entity where all owners are accredited investors.
