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FINANCIAL BENEFITS
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Provides Ongoing Revenue Stream
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RISK MINIMIZATION |
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- Focus on development of existing fields with proven reserves, thereby reducing or eliminating the risks of "wildcatting" or dry holes
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TAX INCENTIVES |
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- Drilling and Re completions may provide some of the best tax advantaged investments
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- Congress gives tax breaks to individual investors that are not available to large companies
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- Up to 100% tax deductible ... 65% to 80% (Intangibles) can be written off in first year
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- 15% of revenue is tax-free with depletion allowance
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COMPETITION & AVAILABILITY
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- Small drilling and recompilation prospects are better than ever (and there are more of them)
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- The large oil and gas companies have gone offshore and overseas in search of finding the "big" oil fields
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- Over 10,000 oil companies have left the U.S. fields since 1982
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DEMAND / CONSUMPTION
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- Petroleum demand in the U.S. requires nearly 60% of oil to be imported from foreign nations
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GOVERNMENT
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- Encourages domestic energy supply with special tax incentives
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WINDOW OF OPPORTUNITY
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- As oil prices are projected to reach $200 per barrel by the end of 2008, the time to act is now
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