Oil well investing is an exclusive opportunity available only to sophisticated investors. In fact, those who are considering investing in oil to take advantage of the South Texas oil boom must meet specific financial criteria that very few investors are capable of doing.
Even though the investor must become accredited, the opportunities available can make it well-worth the effort.
Accreditation, according to the SEC, must be:
- a natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person;
- a natural person with income exceeding $200,000 in each of the two most recent years or joint income with a spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or
- a trust with assets in excess of $5 million, not formed to acquire the securities offered,whose purchases a sophisticated person makes.
Learn more by visiting the SEC.