Oil business model

We rigorously examine investment opportunities, negotiate directly with operators and owners of mineral rights, and raise the necessary funds to finance projects.

 

We base our business model and value creation on three strategic factors:

Sustainability

Profit sustainability from the development of investment portfolios based on identification and access to high quality projects.

High yields

Excellent return on capital for each project developed by the company with short pay-back periods and continuous income between 5 to 20 years.

Transacciones

Low Risk / High Reward

Project selection with risk-reward ratios suitable for the company. We participate in oil extraction areas in strategic partnership with accredited and experienced local operators.

What we do

We offer opportunities to participate in the acquisition of mature fields and oil projects in the USA.

We examine

We carefully examine each project. Our team of experts undertake the technical analysis to evaluate the availability of oil resources.

Select

We select the projects with the highest performance and utility for our investment partners.

We optimise

We optimise portfolios that allow short pay-back periods – 14 to 18 months – with attractive ROIs for our company.

Build

We create relationships and co-investment opportunities with allied operating companies that have a track record in the industry.

 

“Some of the greatest fortunes in the world have been made in this way”

Oil price risk

Oil prices fluctuation can have an impact on the revenues of the project.

Operational risk

Wells and surface infrastructure may suffer mechanicals problems during the operations. That can have an influence in production rates and therefore earnings of the project.

Geological and seasonal risk

A natural process of the well´s life is the fluctuation or decrease of production. Specially on winter season.

Estimation risks

All production rates are estimated based on physical, mathematical or analog correlations. Production volume in barrels may vary.

Legal risks

The operator cannot perform his tasks due to some disability.

Capital market risks

Issues such as inflation, energy costs, geopolitical events, availability and cost of credit, can contribute to increase volatility and lower expectations about invesments.

Global risk

Some of these risks include: abrupt changes in the markets, global diseases, technological advances, changes in regulations, new entries of competitors.

Risk of increased costs

The oil industry can have price variations which could influence in drilling equipments, raw materials, supplies and personnel costs.

Risk factors

We share the following oil investment risks as part of our commitment to transparency and our “investor first” philosophy.

 

Investments in oil and gas are speculative and carry certain risks. All potential investors should carefully consider the risks described below, which are not the only ones associated with this type of investment.
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How we mitigate risks

There are no ways to avoid and eliminate the risks inherent to oil investments. At SAM Oil & Gas we try to manage them in the most efficient and effective manner.

Type of risks

Geologic

Operator Risk

Operations Risk

Reserve and production risk
Price Risk
Regulation Risk

Explanation

Finding hydrocarbons in the ground.

Failures in the operating companies.
Operations problems
There are risks in the accumulation of hydrocarbons, and we can’t know the exact pressure until we drill.
Oil, natural gas and Natural Gas Liquids are global commodities, and prices can fluctuate.
Local, state and federal government intervention can occur and regulations can change.

How we mitigate them

Our geology and reservoir experts analyze as much of the well-related data as possible.

We only work with top operators with long track records of success

Communicate with investors, and follow our operators closely.

We assess geophysical data, log data and analogs. We only invest in fields with proven reserves.

We perform cash flow calculations for each project using conservative oil price scenarios.

We comply with all regulations

“Oil within reach: smart, simple, safe”