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Oil & Gas Exploration & Production
Our Approach
MISSION STATEMENT
We seek to create income, positive returns, and generational wealth through investments in energy, thereby resulting in long term investor relationships.
CORE VALUES
Our core values are Honor, Transparency, Discipline, Courage, and Commitment and being Results Oriented.
Tax Advantages
Tax Advantages
There are many tax advantages available for investors who are sophisticated and wealthy enough to move beyond common asset classes, including these in oil and gas:
Tangible Drilling Cost deduction: Tangible drilling costs are the actual direct costs of drilling equipment, such as rigs and machinery. When drilling a new well, about 30% of the drilling costs are tangible and are 100% tax-deductible but must be depreciated over 7 years.
Tax Advantages
Intangible Drilling Cost deduction: The other 70% of drilling costs are intangible, which are expenses that cannot be recovered but are necessary for the drilling and preparation of wells for production. These costs include survey work, drainage, ground clearing, fuel, wages, repairs, hauling, and supplies; basically, everything except the actual drilling equipment and leases. Intangible drilling costs are 100% tax-deductible in the year incurred as long as a well is operating by March 31 of the following year. Alternatively, Investors can amortize all or a portion of the costs over 5 years. Intangible drilling costs are above-the-line deductions that reduce adjusted gross income and taxable income. Limited Partners can offset passive income with them.
Intangible Drilling Cost Deduction
Tax Benefit Calculation Worksheet