There are two primary methods of investing in oil and gas. The first and most commonly known method is purchasing stock in an oil and gas company. The second is through direct participation in one or several wells where the investor actually owns a portion of the well and receives a share of the income it generates.
In the case of direct participation programs, oil and gas investments are typically structured on a "turnkey" basis, which means the company sets a fixed amount for drilling and completion efforts. Consequently, the investor will know precisely the amount of their investment dedicated to drilling and completion operations.