Rockwell Energy Oil and Gas Investment | Rockwell Investment Partnership Programs

Although some people invest in oil or natural gas for income tax reasons, most people investing in oil or natural gas do so because they believe they will make a profit. This belief is often based on simple rules of supply and demand. The supply of oil is limited while the demand for oil has the potential to increase.

A limited supply and an increase in demand generally means an increase in the price and hopefully an increased profit for the persons owning the supply. In the United States, and most other nations, oil is the principal resource that fuels the economy. The reason for this is simple: nearly everything consumers have or do is in some way related to oil. Gas for the family car, plastic bottles and containers, and petroleum jelly are only a few of the products created from oil.

As free market economies continue to spread and flourish around the world, the demand for oil and natural gas will almost certainly increase. This increase in demand will ultimately result in higher oil prices. As the price of oil increases, oil and natural gas investments will become even more profitable.

Rockwell Private Drilling Programs
Rockwell Private Drilling Ventures are designed for the more aggressive high net-worth investors who want the potential of fast capital returns coupled with excellent tax benefits (See Tax Info: Examples). Participation is on an individual program basis, which can be single-well projects or multi-well projects. Private Drilling Ventures comprise of Developmental Drilling & Exploratory Drilling. The Developmental Drilling Programs involve lower risk developmental wells intended to thoroughly exploit already producing properties. The Exploration Drilling Programs involve prospects that usually offer a greater rate of return than developmental prospects, and are predominately generated from 3D seismic interpretations of hydrocarbon producing geologic horizons.

Rockwell Energy of Texas Participation Fund, LP
These funds are designed to meet the needs of investors who want to receive monthly cash flow and participate in the oil and gas industry without the risks associated with a drilling program. The Funds acquire interests in wells that have been producing for up to 1 year, or longer. Our petroleum reservoir engineering personnel perform a diligent evaluation on the prospective acquisition candidates utilising standard reservoir engineering analysis, historical production and geological data from surrounding fields, and interviews with the properties managing operator. There is no exploration drilling and very little developmental drilling. Development drilling generally occurs only when a Fund acquires an interest in a "unit" (a formally organized group of producing wells) where the Unit Operating Agreement requires participation in the drilling of developmental wells. These Funds may include working interests in Rockwell operated wells, non-operated wells, and royalty income from various producing properties.

Rockwell Lease Acquisition Fund
The Rockwell Lease Acquisition Fund is a pool of capital (usually $500,000 per Fund) used for acquiring designated oil & gas mineral lease positions in domestic USA locations. It is an opportunity for investors to participate in a variety of scenarios for low risk - high return potential. The Fund is designed so that investors would receive a return on their investment after Rockwell resells the mineral lease acreage under the following different investment scenarios.

Scenario 1: Acquisition in areas of interest to Rockwell for its Developmental and Exploratory Drilling Programs; or in areas of mutual interest to other Rockwell properties and our management feels that this AMI acreage would be beneficial to acquire for further development of the nearby projects.

Scenario 2: Acquisition of mineral leases located in areas that have been designated as "New Trend Areas". (Examples: Barnett Shale in North Central Texas; Fayetteville Shale in Central Arkansas; Cotton Valley in East Texas and North Central Louisiana; Coal Bed Methane in Kansas) Rockwell intends to acquire these leaseholds for speculation to resell (at a good profit) to other larger petroleum companies whom have designated these areas as one of their multi-well developmental drilling projects. Rockwell may also elect to participate in these developmental drilling programs with Rockwell's respective acreage positions.

Scenario 3: Acquisition of mineral leases that Rockwell's Geological, Geophysical and Engineering personnel have determined to have significant potential for packaging prospects for resell to other oil & gas companies whom are seeking quality prospects to drill and develop.