A friend is considering investing in this oil company. I’m skeptical but an unable to find much about them on the web. That in and of itself makes me dubious.
Has anyone here ever heard of this company or have better Google-fu than myself.
Thanks
A Factiva search (all dates/all sources) for “mcp petroleum or mcp west virginia” yields no results. That’d be a major, major red flag for me.
They’re not Oilmen.
They might be nice guys. Might be good honest businessmen.
But they’re not Oilmen.
Could you elaborate? Are you in the business?
Have a look at their personnel page. No one has any relevant experience running an oil company.
There’s also this
It’s underneath a picture of an offshore platform. I was unaware of that West Virginia had a coastline :smack:
Their projects page isn’t much better. Two maps stolen from the USGS, and a generic GIS map of the US. That’s nothing.
Like Mongo Ponton says, they might be nice guys, they might even be able to squeeze a few barrels of oil out some tapped out reservoirs, but they’re very, very unlikely to ever turn a profit even at $135 a barrel.
The West Virginia state website has search function. I do not see MCP Petroleum listed as an operator.
Also, the company’s website would not give me much confidence.
Having said that, the company may be completely legitimate. We have no way of knowing what sort of investment your friend is looking to make and what type of information they have provided for his due diligence. If your friend is an experienced investor in private oil and gas companies, he should know the type of information that would be needed for any quality due diligence. If he has no experience, then I would certainly think it is a bad idea to invest.
It is weird that none of the people listed have any experience in the oilfield. Also the map of their planned expansion lists every major basin in the U.S. it would take an enormous geologic staff to properly evaluate that. On the other hand it would be hard to own an oil well and not make money right now so it might work as a short term investment but this company is destined to fail or be bought.
It’s still pretty damn easy to lose money in the oil business right now, even for non-startups. As a newly formed entity, this company has a high chance of failure, without really knowing the specific details.
Also, you seem to be acting like being bought is somewhat analygous to failing. Being bought is, for a high percentage of small companies, the goal.
Run, don’t walk.
Just this week, I completed some continuing ed work which involved oil partnerships.
If you want more details as to why you should stay away, feel free to email or pm me.
Since you’re talking about a possible investment, let’s go right to the investors page.
“flexibility when considering joint ventures and equity investment partners.” --Make us an offer, we’re open to just about anything.
“Due to large initial expenditures in exploration” – We haven’t made any money yet.
"MCP also acquires currently producing wells and leases that fit into the overall production model. " – But we are running some old stripper wells and generating a cashflow.
"Please contact us with any questions or have a proposal to present. " – We don’t stand on ceremony here. Don’t bother with formalities, just call any of us. We’re ready to deal!