Crowdfunding Site Draws Small Investors to New Oil Wells
A company in Dallas, Texas has opened a crowdfunding platform that allows investors to get in on up-and-coming oil wells for as little as $1,000 to $2,000.
“Are you ready to become an Oilman?” Crudefunders asks potential investors who visit the site.
Like this story? Subscribe to The Energy Mix and never miss an edition of our free e-digest.
“We provide an opportunity for the ‘crowd’ (potentially over 300 million people in the USA) to invest directly in oil and gas production wells in amounts as small as $2,000 per investment,” the site states. “We believe Crudefunders will soon be recognized as an industry game-changer, since nearly 90% of our investor database are non-accredited individuals who now can invest in oil for the first time ever.”
The current project listed on the site had raised 63% of its $251,000 goal as of October 27, in increments of $1,000 to $50,000.
“Previously, only a small group of extremely wealthy individuals had the ability to invest in projects like these,” Crudefunders co-founder David Taylor told industry news outlet JWN Energy earlier this month. “Today, anyone can invest in an E&P [exploration and production] project.” And “with oil prices where they are, if the well hits, the opportunity for our investors to make significant return on investment is probable.”