Quickstart     Cashflow File     Day     Participation     Other Financiers    Map     Oil Rights     Well Depths     Partnership     Dealmaker

  Shotgun Agreement     Running in the Red     Bankruptcy     Share Price     Corporate Position     Fast Track     Winning

  Leaving the Seminar  Hostile Areas  Subsidies  Joint Ventures  Administrator  Drilling Contractor  Rig Move Cost  Depletion

  Expiry of Rights  JV Leader  JV Drilling Decision    Posting Land    Waiving Extension Fees 

Quick Start

Welcome to the OilFinancier Rules.

While OilFinancier is a great place to put your financial and negotiation skills to the test—and get these skills enhanced before real money is on the line, there are some rules that need some following.

The OilFinancier website might look like too big of a learning curve for you to fit OilFinancier in your schedule. Be assured that the rules of OilFinancier are a lot easier than the formal and informal rules of real oil deals. It really is not that difficult to be a financier in this seminar: the financiers of the first OilFinancier seminar had no problems figuring out how to put deals together. Everything you need to know to make your first deals can be found from this one webpage.

To make an agreement, your partnership needs to include:

  1. a drilling contractor,
  2. the owner of the oil rights, and
  3. enough investors to pay for the drilling, the drilling contractor’s fee, and the rig move.

The crux of an OilFinancier deal is the OilFinancier agreement. You will use this agreement to build your deal. Just fill in the blanks as your fellow financiers come to an agreement on various terms. The dealmaker will send the agreement to the administrator, who will then send the agreement to all partners for their confirmation. When all partners confirm their acceptance, the well will be drilled.

 

Early Strategy

for

Your First Well

1)  Find four financiers for partners to split the costs equally.

2) Find two adjacent oil rights owned by two of these financers.

3) Plan to drill two shallow wells. If the first well is successful, drill the second. If not, don't drill the second. Go look for another deal.

4) Give the owners of the oil rights about 10% of revenue if the wells are successful.

5) Have all partners take 25% of the drilling costs.

6) For putting up 25% of the drilling cost, each investor should get 22.5% (25% × 0.90) of the revenue.

7) The owner of the oil right, who also paid for 25% of the drilling, should get 32.5% of the revenue (10.0% for the oil right and 22.5% for the money).

8) Write up the agreement to cover these terms. It's not that hard.

9) Send the agreement to the administrator, who will then send it to all partners. When all partners have confirmed, the well is drilled.

This is actually quite sound strategy. It is quite fair and financially sound. And it does not deplete your meager cash holdings too much. If your well is a duster, you'll have enough funds to drill a similar deal somewhere else.

 And you'll even get a fast track promotion! But you'll learn about that later.   

And that’s it! You will learn the other details of OilFinancier as you read a few pages here and there and drill some more wells. By about the 50th day in the seminar, you'll have most of the rules figured out―and you'll be wondering why you were somewhat confused at the start.

While OilFinancier is actually quite easy to play, the more skillful participants will eventually prove their financial, negotiating, and planning abilities. It’s up to you to move past the simpler deals―but only if you want to!

 

 

 

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