Learn How to Invest in Oil | Crudefunders

The Smarter Way to Invest in Oil

Learn how oil investing works with our platform.

When you are setting up your account, please note that you have several options at your disposal.
We encourage investors to maximize their returns by following some simple and proven methods.

Types of Projects

Drill, Test & Completion

Phase 1 – DRILL and TEST For “Accredited” Investors Only

The Drill & Test phase (Reg D) is considered the riskiest portion of a drilling project, thus it is typically reserved for high net worth or “Accredited” individuals with disposable income. However, this phase is also where the highest returns and more significant tax benefits can be found. The "higher return—higher risk" scenario is related to the "Dry Hole Risk” taken by all partners invested in the drill & test stage, but taking the risk allows the Phase 1 investors to take advantage of the tax benefits associated with “intangible drilling costs” (IDC). These IDC benefits can often be equal to the majority of the amount invested. The more risk you take, the larger your tax deduction will be.

Degree of Risk
Tax Benefits
Return Potential

Phase 2 - COMPLETIONFor Almost Everyone Age 18+

The Completion phase (Reg CF) still shares some risk, but is considered the lower risk portion of a drilling project. Anyone age 18 or over may invest a minimum of $2,000. These investors help crowdfund the completion stage in a “lower risk—lower return” scenario by getting what the industry calls a "free look downhole". Phase 2 only occurs when the well is deemed by the Project Operator to be “worth completing” and capable of producing commercially viable quantities of hydrocarbons (oil and/or natural gas). Only then are investor funds released for completion of the well. If the Project Operator decides NOT to complete, Phase 2 investors are 100% refunded.

Degree of Risk
Tax Benefits
Return Potential

Re-Stimulation

For Almost Everyone Age 18+

Re-stimulation projects (Reg CF) differ from Drill, Test, and Completion projects because they take place in existing well bores where the cost of drilling, testing, and completing a new well has already occurred. In a re-stimulation, the Project Operator is entering an existing well bore to "fracture" or otherwise “stimulate” a well to produce more oil or gas than it already has. A prospect well has often produced for many years, but has depleted overtime. However, the well is deemed by the Operator to be capable of producing as much or more oil and gas as it originally did, once “re-stimulated”. These projects are often prompted by the successful re-stimulation of other wells in the area and are much lower risk than new drilling projects. While they are less risk, they still have good income potential as well as significant tax benefits. CLICK HERE for technical details regarding re-stimulation. Almost everyone age 18 or over is eligible to participate. The minimum investment is $2,000.

Degree of Risk
Tax Benefits
Return Potential

How do I begin?

Review the Executive Overview, Economic Analysis, Geology Reports and Offering Documents.

1

View Projects

We have Project offerings for accredited investors and nearly everyone else.
View Current Projects

2

Learn More

Based on the type of project, you may be asked to register before previewing the Project.

3

Review Investment

Review the Executive Overview, Economic Analysis, Geology Reports and Offering Documents.

4

Invest Online

Create an Investor Profile that allows you to subscribe, fund and manage your investment from anywhere.

5

Build Portfolio

We encourage our investors to diversify their oil & gas portfolio over multiple projects to spread their risk and increase returns.

Simple Ways to Invest

Investor Cash Account

Setting up your Crudefunders online investment account only takes a few minutes to complete. By activating your investment account under the guidance of our platform broker-dealer intermediary, you can facilitate the a ACH transfer of your funds transaction funds from your bank in a secure and seamless manner.

All investment funds are kept in each Project's designated Escrow Account held at a FDIC insured bank account until the offering has closed, investor funds have cleared, and the compliance team has verified that all offering and investor documents have been validated and properly executed in accordance with all regulatory rules.

Self-Directed IRA Accounts

You can use your existing self-directed IRA retirement account, or easily setup a new one, to invest in our oil & gas projects. Due to the unique nature of investing in oil & gas, we suggest considering setting up a Roth IRA where you use post-taxed money to fund your account and then all future account growth and withdrawals are tax free. The maximum annual contribution to an IRA is $5,500 unless you are age 50 or over in which case it is $6,500.

You may contribute to your IRA from January 1st this year's tax filing deadline — April 16, 2018. If you need to open an account, we recommend Kingdom Trust. They have an economically beneficial fee schedule and great customer service.

Education Savings Account

You can also invest our Oil & Gas projects with a Coverdell ESA a tax-advantaged savings vehicle that lets you save money for qualified education expenses of a named beneficiary, such as your child or grandchild. Qualified education expenses include college and secondary school expenses.

  • The annual contribution limit for Coverdell ESAs is $2,000 per beneficiary until age 18.
  • For single tax filers, your annual MAGI must be less than $95,000 for you to make a full contribution (a partial contribution is allowed if your income is $95,000 to $110,000).
  • For joint filers (if you're married, you must file a joint return to be eligible to contribute to a Coverdell ESA), your annual MAGI must be less than $190,000 to make a full contribution ($190,000 to $220,000 to make a partial contribution).
  • If you are interested in setting up a Coverdell ESA account for investing in oil. Contact Us

Are you ready to make an investment?

Browse Projects

t: (844) FUND.OIL/ info@crudefunders.com / 1601 Elm Street #4245, Dallas, Texas 75201