Investor FAQ
Common questions from accredited investors about our Texas oil investment programs.
Getting Started
What is the minimum investment?
The minimum investment to participate in our working interest programs is $50,000. This provides a meaningful ownership stake with full IDC tax deduction benefits.
How do I get started?
Complete our investor qualification form and a member of our investment team will contact you within 24 hours to discuss available programs and answer your questions.
What are the accredited investor requirements?
You must earn $200,000+ annually ($300,000+ jointly) or have $1M+ net worth excluding primary residence, as defined by the SEC under Regulation D.
Do I need prior oil & gas experience?
No. Our programs are designed for investors new to oil and gas. Our team provides full education and guidance throughout the process.
Tax Advantages
How much can I deduct in Year 1?
Working interest investors can typically deduct 65–80% of their investment in Year 1 through Intangible Drilling Cost (IDC) deductions. For a $100,000 investment at 70% IDC ratio, that’s $70,000 in deductions.
Can IDCs offset my W-2 income?
Yes. Working interest income and deductions are classified as active income by the IRS, meaning IDC deductions can directly offset W-2 wages, business income, and other active income.
What is the percentage depletion allowance?
The 15% depletion allowance allows you to deduct 15% of gross production income each year, potentially exceeding your original cost basis over time — creating permanently tax-free income.
What tax documents will I receive?
You’ll receive a K-1 form annually detailing all deductions, income, and tax-relevant information for your working interest ownership.
Should I consult my tax advisor?
Absolutely. We always recommend discussing oil and gas investments with your CPA or tax advisor to understand how the deductions apply to your specific tax situation.
Investment Process
What is a working interest?
A working interest is a direct fractional ownership stake in an oil well. You own a proportional share of the well, its production, and its associated tax benefits.
What's the difference between working interest and royalty interest?
Working interest provides full IDC tax deductions and active income classification but includes operating cost exposure. Royalty interest provides income-only participation without operating costs but fewer tax benefits.
Do I need to be involved in operations?
No. Professional operators manage all drilling, completion, and production operations. Your role is as a passive working interest owner receiving income and tax benefits.
How are wells selected?
Wells are selected based on extensive geological analysis, offset well production data, formation characteristics, and operator track record in the target area.
Risk & Returns
When will I receive my first income check?
First production income typically arrives 6–12 months after investment, depending on drilling and completion timelines.
How often are distributions made?
Working interest owners receive monthly production revenue distributions based on actual well output.
What returns can I expect?
Returns vary based on well performance and oil prices. We provide detailed projections during the program review process, but all projections are estimates — actual results may vary.
How long do wells produce?
Texas horizontal wells in the Permian Basin typically produce for 20–30+ years, though at declining rates. The majority of production occurs in the first 3–5 years.
What are the risks?
Oil investments involve commodity price risk, individual well performance variability, operating cost risk, and illiquidity. These are private placements suitable only for accredited investors who can bear the risk of loss.
Are these investments liquid?
No. Working interests are illiquid — there is no established secondary market. Investors should plan to hold their interest for the productive life of the well.
Is my principal guaranteed?
No. Oil and gas investments involve risk, including the potential loss of invested capital. Past performance of similar wells is not a guarantee of future results.
Accredited Investor Requirements
What qualifies me as an accredited investor?
You qualify if you earn $200,000+ annually ($300,000+ jointly) for the past 2 years, or have $1M+ net worth excluding your primary residence, or hold Series 7/65/82 licenses.
How is my accredited status verified?
For 506(b) offerings, self-certification is typically accepted. For 506(c) offerings, third-party verification from a CPA, attorney, or registered investment advisor is required.
Can my entity invest?
Yes. Entities with total assets exceeding $5,000,000, or entities owned entirely by accredited investors, may qualify.
Request Your Program Overview
Complete this 60-second form to receive our current investment program details.
By requesting information, you represent that you believe you qualify as an accredited investor as defined by SEC Rule 501. This is not an offer to sell or solicitation to buy any security. Programs available only to verified accredited investors under SEC Regulation D Rule 506(b). No obligation to invest.
Accredited Investors Only · No Obligation