Hi All,

Recently I came across an investment opportunity in Oil and Gas working interest. Basically, you pay upfront a certain amount of capital (eg USD10K) to purcase a 'working interest', which is the right and title to an Oil and Gas lease, and you lease this working interest to an Oil and Gas company which will pay you a certain amount of return every month. The company that markets the lease is called Oilpods (www.oilpods.com) and the company that performs the actual drilling, development and production of the oil and gas is called Powder River Basin Gas Corp. (PRVB), www.powderriverpetroleum.com

The investment is rougly as follows:
Upfront 1-time capital in multiples of USD10K.
1st 6 months - nil
7th month - 18-th month (i.e. next 1 year) - 9% PA (paid monthly 0.75%)
next 2 -3 years until capital is fully recovered - 12% PA, and an equalization payment that is variable (depends on oil production) that can range from 100-500 every 3 month.

It is expected to recover the capital in 3-5 years time, and enjoy about 10-15% of ROI after that, until the 12th or 13th year when the lease expires.

It claims to give good cash flow (10-15% is attractive), and fast recovery of capital.

Sounds like a good deal to me.

Appreciates if anyone can give me some advice on this (like what else to look out for, any caveats that I should be aware of, etc).

I won't touch it with a 10' stick. It smells scam-ish to me, but that's just MHO.

Try taking a look at the Canadian Royal Trusts. They own and operate oil and gas properties in Canada and are existing multi-billion dollar entities with long track records. They trade on major exchanges (NYSE, Toronto) and return 10-15% paid monthly.