The American Petroleum Institute assigns a unique number to every oil and gas well, and those numbers are used to identify and track each one. For investors, that identifier can be one of the quickest ways to confirm that a drilling project actually exists. John Engel, chief operating officer at Gulf Coast Western, made that point on the “Wealthability for CPAs” podcast, and a paid advertorial in the Santa Clarita Valley Signal later summarized his advice.
Why the Number Matters
Engel explained that checking a well’s permit status is often the simplest form of verification available. “In almost every case, if you’re going to be participating in an oil well, one of the easiest things to find out is if it’s permitted,” he said. A registered number, according to the advertorial, confirms that a company is a legitimate working interest partner in the well.
The flip side is just as telling. Engel said a promoter should be able to prove involvement in a well with little effort. When that proof is missing, or when the person pitching a deal cannot readily produce the number, investors should treat it as a red flag. He put the right reaction bluntly: “If it’s not … your antenna should be on high alert.”
Part of a Larger Vetting Process
The API check sits at the end of a longer list Engel recommends. He suggested starting with the Better Business Bureau, then reviewing a company’s financial statements and Dun & Bradstreet reports. Secretary of state offices where a firm does business can provide additional records.
Engel brings experience in securities compliance to these recommendations. Before joining Gulf Coast Western, he said, he researched the company thoroughly, and he encourages others to do the same with any operator they consider.
Gulf Coast Western, headquartered in Dallas and active since 1970, operates sites across Texas, Kansas, Alabama, Mississippi, Louisiana, Oklahoma, and Colorado. The company positions this kind of verification as a natural part of investor education. That stance fits its stated view that no reputable firm can or should guarantee a profit, because even a professionally executed project can be affected by forces outside anyone’s control. Visit this page for more information.
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