Investing in direct participation private oil & gas drilling programs can make it possible for investors to achieve big first year returns, and even multiples on their money after some new oil & gas wells are drilled, completed, and hooked-up. I have recently run numbers on both current completions, and historical records in select mid-continent areas of the US where I'm familiar. I've also been looking at historical records in a few areas of the US where returns at present costs can exceed more than 20 to 1 because of today's prices of oil & natural gas.
You can sit on the sidelines, and lose money in the market, or real estate for awhile, or get involved with the right private oil & gas operators, and smaller companies now developing oil & gas leases in certain lucrative areas where risk is very manageable. These same companies have often acquired their acreage, and oil & gas leases at much lower oil & gas prices then we see right now, and in some cases, for less than half of current prices.
It doesn't hurt to diversify in private oil & gas drilling programs, particularly if you need big tax write-offs, and you can afford to take some risk to boost, and hedge your portfolio returns. In fact, the big first year tax write-offs alone can warrant investing in private oil & gas programs for those investors who have yearly incomes exceeding six figures. Tax write-offs can also be taken against active, ordinary income, and passive income while reducing gross income for tax purposes. Investors get accelerated depreciation, and 15% yearly depletion allowances on income they receive from their oil & gas wells until they receive their money back. The 'passive loss rule' still favors oil & gas investors.
If you want to hear more, and would like to discuss some options when considering oil & gas investing, just call or email me.
Dennis W. Stutes Ceo, American Energy Developments americanenergy@gmail.com dwstutes@sbcglobal.net Office: 408 975 0800 Cell: 805 701 7761