Spreading your money across many wells also protects you if something goes wrong.
If a fund owns 10% of an $18 million well, that is very different from owning the whole well.
For a lawsuit to reach you, it would have to be huge. Think over $250 million.
First, the operator's insurance would have to deal with it.
Then the fund's insurance and lawyers would have to deal with it.
Only after all that could it reach the investors.
And a claim that big against an $18 million well would be very hard to win in court.
Owning a small piece of many wells keeps your risk from any one well small.
Share this with someone learning how oil and gas funds manage risk.