Economics Dictate +

There are several reasons to invest in oil and gas with Sethi Petroleum:

Domestic Benefits

According to the International Energy Agency, the U.S. is positioned to surpass Saudi Arabia as the world's largest energy producer by 2020 due to large amounts of crude oil in shale rock formations (most of which is still untapped).

Oil Shortage

Data suggests that there is a shortage of crude oil, causing prices to constantly increase.

US Dollar

The USD has a cyclical relationship with commodities. As the value of the dollar decreases, commodity prices (e.g. oil) significantly increase.

Diversification

Oil and gas investments will diversify your portfolio with little maintenance and possibly retain higher yields over time at a much lower risk.

Attractive Return on Investments

A successful project can be very lucrative for an investor sometimes yielding break even + 100% in the first year.

Tax Benefits

Contingent on the project, an investor may be able to write-off 60 to 90% of the investment the first year alone.

Pathways to Investing +

Oil and gas investment encompasses an entire spectrum of opportunities to build your portfolio. Common approaches to oil investment include:

Purchase stocks, bonds and options

PROS

• Can result in very quick return on investment

• Investors have the freedom to buy and sell at will

• Bonds offer a fixed cost and you do not have to share profits

CONS

• High risk due to market volatility

• Relies more on the success of the company and fluctuation of market than the company's exploration and research efforts

• Creditors can force you into bankruptcy for bond payment defaults

Commodity/Futures Contracts (both subject to market fluctuations)

PROS

• Investors can trade with a small amount of capital

• Market volatility offers potential for a quick return on profit

• Investor can buy or sell the commodity futures contract

CONS

• Leverage causes high risk

• Principal investment is not guaranteed

• Potential for margin calls

Conservative Developmental Projects (Sethi Petroleum’s Way)

PROS

• Client invests with company who then pools all investor funds together to purchase and maintain an actual percentage of the production minus the taxes and expenses on each well

• Investors also receive a percentage of the additional companies who own the equipment used to operate and drill wells

• Investor receives General Partnership tax benefits

• This method can potentially yield 100% ROI annually.

CONS

• Covers longer period of time

• Investment success depends on local and international factors that are out of the investor's hands

Public VS Private +

Investing in public stocks can be beneficial to investors as they allow a quick ROI, however any gained or loss capital is based specifically on the fluctuation of the market and dividends must be paid out to other parties before getting back into the hands of investors.

When investing directly in oil wells, the middleman is taken out and the investor is allowed the same financial benefits as major companies, yielding a higher ROI.

SEC Filing +

SEC FILING LINK>>

Sethi Petroleum is very serious about providing our potential Joint Venture General Partners with the ability to conduct due diligence before doing business with us. Although Sethi Petroleum does not offer or sell securities, we still believe that the SEC recommendations are a strong guideline for any potential Partner to follow in considering participation in a Sethi Petroleum-managed Joint Venture General Partnership or any oil and gas investment.

Sethi Petroleum, a Dallas-based company founded in 2003, is focused on the exploration, development and acquisition of domestic oil and gas reserves. We have never been involved in litigation with any investor and have hundreds of partners throughout the nation that have done business with us and can speak to our history. By providing these suggestions and continuing to manage our business in a professional manner, this is a record we intend to maintain.

Investing Tips +

Unfortunately, there are many asset management/investment companies that are not in the best interest of the investor. It is our policy to remain completely upfront and transparent with our clients regarding their finances invested with us.

Here are a few questions to ask yourself when seeking out an investment company:

• Does the company disclose their financial information?

• Is this company properly filed with the SEC?

• Are they properly filed with the state?

• What is this company’s track record?

• What are the credentials of the employees analyzing the deals?

• What is the company’s drilling history? What is the partner’s drilling history ?

In addition, be sure to request the following information from your investment company to ensure financial transparency:

• Legal description of the property/well

• Copy of the operator’s contract

• Conveyance documents (post-investment)

• Tax incentive information

Investing in Oil & Gas Using Your Self-Directed IRA, ROTH or 401k Plan +

Investing in oil can also be accomplished using a Self-Directed IRA. IRA oil investments go through the same approval process as any other IRA investments.

Using your Self - Directed IRA to invest in Oil and Gas

Create a Fortune Investing in an Oil and Gas Investment with your Self-Directed IRA

You can invest in almost anything with a truly self-directed IRA, including direct participation in a Sethi Petroleum Joint Venture.

How It Works:

1. Commit to Sethi Petroleum's Current Oil and Gas Joint Venture

2. Open and Fund new IRA account with Equity Trust Company (ETC)

• Contribute to the account by rollover/transfer funds from existing IRA

3.  Complete and Submit the General Direction of Investment (DOI) Form to ETC.

• Send supporting documentation for Sethi Petroleum's Joint Venture Agreement

• Sign documentation and insure proper titling before sending

4.  Investment Funds are sent to Sethi Petroleum by Equity Trust Company

1031 Real Estate Exchange For Oil and Gas Production +

One of the most unique aspects of the 1031 Exchange process is the ability to rebalance or diversify the real estate sector of an investment portfolio by relinquishing a property or properties for a “fractional interest” in an oil and gas production as a “like kind” property. A “fractional interest” is considered similar to a “tenant-in-common” ownership structure in real estate by the Internal Revenue service for purposes of a 1031 Exchange.

A “fractional interest” in an oil and gas production offers a steady income stream without tenant concerns. The purchase of a "fractional interest" in a qualified working interest can provide the 1031 Exchange buyer the stability of an immediate closing with a predictable cash flow stream. When oil and gas prices rise, the buyer in the 1031 Exchange can also participate in the future production price gains with payment based on the rising commodity prices over the long term. Each fractional owner of an offering has the same rights as a single owner and can subdivide or offer for sale their ownership interest at any time on the open market, providing liquidity when needed after the 1031 Exchange is completed. Many times, a “fractional interest” in oil and production can yield greater liquidity than other real estate investments for the buyer after the 1031 Exchange.

There is an active secondary market for established oil and gas production. This allows the buyer after the 1031 Exchange to sell directly to other 1031 Exchange buyers or investors. Auctions specializing in oil and gas production based on projected production and the commodity prices also sell these assets. Traditional lenders will allow qualified borrowers to leverage substantial portions of the oil and gas “fractional interest” acquired through a 1031 Exchange. Working interest in oil and gas provides Direct Assignment; investors receive legal title to the percentage of the working interest purchased. As a result, direct investments may provide an attractive 1030 Exchange opportunity for individuals and companies which are seeking to reinvest capital from investments in real estate sales.

You should retain a qualified lawyer or Qualified Intermediary before attempting a 1031 exchange to make sure a 1031 exchange is possible and that it is structured and executed properly.