This is a reprint of the article “Performing Due Diligence on a Micro-Cap Oil & Gas Company” written by Erik Nelson, President of Coral Capital Partners, Inc. that was published in the Fall, 2011 edition of Micro-Cap Review Magazine. It takes a look at some of the essential items to consider when evaluating a micro-cap oil and gas company as a potential investment. It is an excellent primer on understanding the various terms and their definitions when looking at a potential oil and gas investment. This is the 2nd article authored by Erik Nelson to be published in Micro-Cap Review Magazine, and the 1st through Coral Capital Partners.
Tag Archive for decline curve
In the oil and gas industry, the decline curve is the rate a decrease in production for an oil or gas well over a period of time. The decline curve is very important in evaluating a natural gas or oil well or a lease because as the well or lease increases in age the amount of production naturally decreases. As the production decreases and ever increasing amount of maintenance needs to be done to the wells and fields in order to maintain production levels.