Accredited Investors
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Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer.
Or any natural person whose individual net worth or joint net worth with that person’s spouse at the time of his purchase exceeds $1,000,000
Or any natural person who had individual income in excess of $200,000 in each of the two most recent years, or joint income with that person’s spouse in excess of $300,000 in each of those years, and has a reasonable expectation of reaching the same income level in the current year.
Or any trust with total assets in excess of $5,000,000 not formed for the specific purpose of acquiring the securities offered, whose purchase of the securities is directed by a person who has such knowledge and experience in financial and business matters, that he is capable of evaluating the merits and risks of the prospective investment.
Or any organization that was not formed for the purpose of acquiring the securities being sold with total assets in excess of $5,000,000.
Or any entity in which all of the equity owners are accredited investors.
* SEC Accredited Investor Bulletin == > 
https://www.sec.gov/files/ib_accreditedinvestors.pdf
https://www.sec.gov/files/ib_accreditedinvestors.pdf* SEC Investor Alert - Private Oil and Gas Offerings == > https://www.sec.gov/investor/alerts/ia_oilgas.pdf
https://www.sec.gov/investor/alerts/ia_oilgas.pdfDIRECT INVESTMENT
Through direct participation programs in oil and gas, investors actually own a portion of the well and receive a share of the cash flow generated via monthly disbursements. In addition to the income potential, oil and gas investments offer substantial tax benefits, which the U.S. government has designed to encourage domestic drilling. Since the Tax Reform Act of 1986, direct participation programs in oil and gas are one of the few remaining investments that allow investors to shelter income, making it one of the most tax advantaged investments today. Investors may be able to deduct as much as 65 to 100 percent of their investment within the first year, whether the well is successful or not, and 15 percent of your income is tax-free
CLEAN
Compared to coal, natural gas produce more then 50% less CO2
Compared to oil, natural gas produces less than 30% less than oil.
DOMESTIC
97% of the natural gas in America is produced in America.
By investing in natural gas wells, you are contributing to more that $181 billion is wages and benefits which employs more than 3 million jobs.
ABUNDANT
Experts has stated that America has more than 100 years supply of natural gas. The this number is growing due to new finds.
COST EFFECTIVE
Natural gas is one of the easiest alternative fuels to transport.
Natural gas is affordable and readily available, long-term solution to power generators, home heating, and other industrial uses.
Currently in America less than 30% of natural gas is used in gas-fired capacity plants which leaves an abundant supply potential for transmission facilities, alternative methods of transportation and services.
The Independent Producer of America has always been determined to increase domestic reserves and be free of OPEC dependency. This has placed a tremendous need for capital on oil and gas companies. The burden is particularly heavy for independent producers whose funds are more limited than those of major oil and gas companies which fund their drilling activities with the sale of stock. Most Independent Operators, which drill the majority of the Nation’s wells, are able to provide investors with cash flow and tax advantages through direct participation in oil and gas programs, thus avoiding the major oil companies’ corporate overhead. Oil and Gas Investing Tax Treatment
The Tax Reform Act (Act), enacted in 1986, made significant changes to the tax laws as they pertain to oil and gas investments. The Act attempted, for the most part, to shift more of the tax burden from individuals to corporations. The Act affected the ability of taxpayers to shelter income. Intangible Developmental Costs
The Act allows Domestic Intangible Development costs to be expensed or capitalized at the discretion of the taxpayer. Furthermore, intangible costs may be deducted by the taxpayer in the year the well is drilled. Tangible Developmental Costs
Currently, the drilling of an oil and/or gas well is considered production of an asset. The tangible well costs are capitalized and amortized over a seven (7) year period, beginning with the month in which they are paid depletion
Independent producers and royalty owners can claim percentage depletion of 15% on domestic production. Depletion costs may be recovered using whichever of two (2) methods provides a higher deduction, cost depletion or percentage depletion. Percentage depletion for oil and gas properties is limited to independent producers and royalty owners for daily production up to 1,000 barrels of crude oil or an equivalent amount of natural gas. However, percentage depletion cannot exceed 65% of overall income.
Breakdown of Deductions*
| Cost Classification | Tax Treatment | Percent Estimated | ||||
| Intangible Developmental | Expensed year incurred | 50% | ||||
| Tangible Developmental | Depreciated over 7 years | 25% | ||||
| Leasehold | Depreciated over life of well | 10% | ||||
| Organization & Due Diligence | Amortized over 60 months | 5% | ||||
| Commissions | Amortized over60 months | 10% |
Below is an clickable link to the 4.41.1 Oil and Gas Hand Book. Click on the IRS logo to be taken to all the latest Tax information, The Chapter 41 for Oil and Gas. We are not accountants but Geo-Scientist, please direct all tax questions to your own personal financial advisor. The information needed is found in the link provided.
Click on the IRS Icon below to be directed to Oil & Gas Handbook Chapter 41.
