Working Interests

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Dictionary Says

Definition of 'Working Interests'

Refers to a form of investment in oil and gas drilling operations in which the investor is directly liable for a portion of the ongoing costs associated with exploration, drilling and production. In a similar fashion, working interest owners also fully participate in the profits of any successful wells. This stands in contrast to royalty interests, in which an investor's cost is usually limited to their initial investment, also resulting in a lower potential for large profits.
Investopedia Says

Investopedia explains 'Working Interests'

While the idea of earning unlimited profits from owning a working interest in a well might sound wonderful, the downside can wipe out unsuspecting investors. It's generally recommended that investors without deep pockets and a solid working knowledge of oil and gas exploration stick with limited liability royalty interests.
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'Working Interests'

  • Oil: A Big Investment With Big Tax Breaks

    http://www.investopedia.com/articles/07/oil-tax-break.asp
    ... investors. These can be broken down into four major categories: mutual funds,
    partnerships, royalty interests and working interests. Each ...

  • Investing In Oil And Gas UITs

    http://www.investopedia.com/articles/basics/08/oil-gas-unit-investment-trust.asp
    ... Limited partnerships, working interests and unit investment trusts (UITs) all provide
    pass-through treatment of both income and deductions derived from oil and ...

  • Northern Oil And Gas - Small Cap Williston Player

    http://stocks.investopedia.com/stock-analysis/2010/Northern-Oil-And-Gas---Small-Cap-Williston-Player-NOG1011.aspx
    ... Northern Oil and Gas has small working interests in hundreds of wells, and the company
    partners with some of the biggest and well-known players in the Williston ...

  • Micro Cap Picks For 2010

    http://stocks.investopedia.com/stock-analysis/2010/Micro-Cap-Picks-For-2010-TA-HNR-HPT-SPAR-ACET0114.aspx
    ... Harvest Natural Resources (NYSE:HNR) is a US oil company operating in Venezuela
    with working interests all over the world. Despite ...

  • Developing West African Oil Plays

    http://stocks.investopedia.com/stock-analysis/2009/Developing-West-African-Oil-Plays-APC0918.aspx
    ... the well include Woodside Petroleum (ASX:WPL), Repsol YPF SA (NYSE:REP) and Tullow
    Oil (LSE:TLW), with a 25%, 25% and 10% working interests, respectively, in ...

  • Mine For Profits With Natural Resource Sector Funds

    http://www.investopedia.com/articles/mutualfund/09/natural-resource-funds.asp
    ... over 2004-2008 also attracted the attention of many reluctant investors, but some
    are not qualified to invest in working interests, drilling partnerships or ...

  • Small Stocks With Huge Potential

    http://stocks.investopedia.com/stock-analysis/2010/Small-Stocks-With-Huge-Potential-JTX-HNR-COP-HRB-WMT0205.aspx
    ... Venezuela. Keep in mind Harvest is a US based company and over the years
    has bought up working interests all over the world. Back ...

  • Timely Small Caps For 2010

    http://stocks.investopedia.com/stock-analysis/2010/Timely-Small-Caps-For-2010-JTX-HNR-TA-HRB0105.aspx
    ... While its sole source of revenues still comes from there, Harvest has several working
    interests in areas all over the world, all of which could be worth more ...

  • How Will Your Investment Make Money?

    http://www.investopedia.com/articles/financial-theory/09/how-investments-make-money-income.asp
    ... kinds. Working interests in oil and gas leases generate revenue that may
    be 15% tax-free because of the depletion allowance. Limited ...

  • Retirement Income Stocks

    http://stocks.investopedia.com/stock-analysis/2010/Retirement-Income-Stocks-PEY-IRC-O-AT-EGAS1201.aspx
    ... The company also owns working interests in 160 natural gas wells along with
    gathering and transfer pipeline assets. EGAS yields 5.4%. ...

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