Archives: September 2007
Thu Sep 27, 2007
'Investing in Private Oil & Gas Drilling/Production Programs'
Dear Investors, investing in private oil & gas drilling programs involving both drilling, and acquiring existing production can not only make your money, but also save you substantial taxes on the drilling portion of your investments.
By investing in oil & gas private drilling programs, you can immediately lower your gross income for tax purposes by a large percentage of your oil & gas investment. Usually, you can get a first year Intangiblie Drilling Cost(IDC) write-off of up to 90% on your investment dollars. If you are in the maximum tax bracket this can ultimately give you about a 35% direct reduction of your gross income proportionate to the total you invest in a private oil & gas drilling program. You will also receive Tangible Drilling Cost write-offs(TDC), or accelerated depreciation on oil & gas field equipment, typically taken over 7 years. In addition, you will also receive a 15% yearly cost depletion allowance, on the money you invest. Therefore, if you hold the oil & gas investment for 6.7 years you can receive most of your money back with this lucrative tax break. Talk to your tax preparer about these great tax benefits before you invest.
Some investors have the mistaken impression you shouldn't invest when prices of oil & gas are too high. This isn't the case in drilling programs, simply because the value of the proved, and recoverable oil & gas reserves keep going-up with any price increases in oil & gas. Of course development, and field costs have gone-up too, but they don't represent a deal breaking part of investing in oil & gas today.
Investing in oil & gas private programs allow you to take advantage of steadily rising prices for both oil & gas, and should definitely be considered when deciding to hedge, or increase the over-all returns in your portfolio. If taxes are a constant issue you most certainly should consider investing a portion of your funds in energy, and in particular oil & gas drilling programs.
Call or email me with any questions or to learn about some of the oil & gas drilling programs being offered in the US today. Dennis Ofc: 408 975 0800 Field Office: 870 445 6528 Cell: 805 701 7761 americanenergy@gmail.com
[1] comments (263 views) | [0] Trackbacks [0] Pingbacks
Wed Sep 19, 2007
'Investing in Private & Non-Promoted Oil & Gas Drilling Deals'
Investing in private, and non-promoted, or no commission oil & gas drilling programs is possible by investing directly with issuers and owners, and/or oil & gas operators, and is the best way to minimize the people risk, and give yourself the greatest chance to make money in private oil & gas deals in my opinion. I have spent 25 years of my life in the oil & gas industry, and this has helped me to arrive at certain conclusions about who to do business with to get the best possible outcome or return on your investment.
Of course you still have to make sure the people you are doing business with are honest, have integrity, and most importantly know what they are doing. Track records are important, and companies should be willing to share their backgrounds & experience, and their track records and current success or not in the business.
I don't think the flashy pictures, or slickly done promotional packages offered by promotional companies are the way to go. Believe it not, many sales or heavily promoted oil & gas deals can be marked-up 50% to 300% or more on the front-in. They are sold based on projections of future performance after development, and this is your best clue to listen for when dealing with these companies. Actually, most well done memorandums are prepared by securities attornies, and are quite dry, and boring, plus they don't look all that great. Good memorandums have lot's of required boiler plate, and legal phrases needed to protect both investors and companies offering the oil and gas investment opportunities.
Take your time when you analyse oil & gas deals, and compare them to one another. You can come to some fairly quick conclusions of whether your are listening to the real truth, or just being hustled, and promoted.
Call or email me if you would like more information about how to determine if someone offering an oil & gas drilling program is telling you the truth, and not just what you want to hear.
Dennis Ofc: 408 975 0800 Cell: 805 701 7761 Email: americanenergy@gmail.com
[1] comments (306 views) | [0] Trackbacks [0] Pingbacks