[408-COUPE]

New to the site, not even sure this is the right section/forum to ask this but I will. I live in Oklahoma and have always wanted to be involved in oil and gas and now have the opportunity to do so. One of my good friends has a pump shop and we were considering partnering up and investing in an oil well (one that's cheap but producing, potentially need some work done to it, buying at an auction type deal). I'm wondering if this is a good idea or not in the grand sceem of things. If this isn't the right site to ask this please refer one, or someone that can help me. Thanks.

[Heineken]

Here's a better way: Invest in a stock called PER. It's an oil royalty trust operating in the Lime Formation. Low production costs due to the nature of that structure. Parent is SandRidge. Research it and it'll look pretty good to you, I'd think. Yields around 8% and you probably won't do better than that trying to squeeze a dry well. The dividend and/or stock price should continue to rise for the next few years as more wells are drilled. Then in a few years you'll get back all your principal and then it'll all be gravy for quite a few more years. Not risk-free but close to it.

Another good, related one is SDT, SandRidge Mississippian Trust. And then there's MV Oil Trust, MVO.

These are all good because they derive most of their income from oil, not gas.

All three have considerable production life remaining.

Disclosure: I own shares of PER and MVO.