Investing in oil and gas wells

Owning non-operated working interest in oil and gas wells located in major U.S. shale basins.

InvesTment Opportunities

Tax Incentives

One of the main reasons private investors consider investing in oil and gas wells is the tax incentive on intangible drilling costs (IDCs).

Depletion Allowance

Investors could receive up to 15% of the gross annual well production tax free for the life of the well.

Cash-Flow

Investors not only benefit from receiving tax and depletion allowances. Oil and gas wells can generate cash-flow for more than 25 years.

Oil and Gas Drilling

High risk, high reward. Oil and gas working interest has its perks. Of course, this type of investment also comes with a certain amount of risk.

The government has provided a tax deduction on intangible drilling costs (IDC’s) to encourage oil and gas companies to take the risk of drilling. This is
particularly important should the well be a “dry hole”.

Oil and Gas Investing

I’ve been in the oil and gas industry for over 35 years. There have been ups and downs, just like any other market experiences. Nevertheless, working interest ownership in oil and gas wells is by far the most risk one can take in the energy industry.

Very few investors are suitable for this type of investment. Before considering oil and gas working interest, I recommend you consult with your financial adviser, CPA, or other professional.

Troy W. Eckard

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