Mustang Resources, Inc. focuses on creating value to participants in investment programs that it organizes. Investment programs focus on crude oil and natural gas production from areas with proven reserves, and normally on areas with existing revenue and production. In some instances, after significant geologic evaluation, Mustang Resources may acquire mineral rights not inclusive of current production, with intentions to develop the subject holdings.
The management of Mustang Resources evaluates many possible opportunities, drawn from its relationships with other oil development companies and with lease owners throughout its area of operations. Occasionally, joint venture projects with other oil development companies offer a shared risk aspect that is palatable; this is often the case in deeper drilling opportunities, where operating costs are significant.
In shallow production areas with lower acquisition, operation and development costs, complete control of a given opportunity makes more sense. Investment programs organized by the Company with respect to shallow production areas are generally designed to be low-risk opportunities based on existing oil production with historical precedence, rather than higher-risk “wildcatting” or exploratory drilling operations. Essentially, these programs involve the purchase of oil production income with the ability to incrementally drill new wells to increase existing production.
Tax Advantages. Recently enhanced tax legislation allows for up to 85% of development cost to be written off for tax purposes. In addition, 15 cents of every gross income dollar earned from said development is nontaxable. This translates into tax-advantaged returns for equity investors.
Specific Deployment of Capital. Unlike other investment companies in the oil and gas industry, Mustang Resources, Inc. identifies specific opportunities before raising capital. Because specific opportunities are targeted immediately by Mustang Resources, Inc., larger amounts of development tax credits are likely to accrue to equity investors in Mustang Oil projects than in similarly structured programs with unspecific operating plans.
Assets Producing Current Income. Mustang Resources, Inc. only
acquires oil leases that are currently producing income sufficient to
service its debt investors multiple times over. As such, the speculative
aspect of Mustang Resources, Inc. programs is significantly lower than
those involved in purely exploratory ventures.
Early Stage Production. The production realized by the Corporation from development on its properties will typically be from wells that are at the beginning stage of their production and should therefore have a long anticipated productive life, typically exceeding fifteen years per well.
Potentially Increasing Cash Flow. Successful incremental drilling on the properties controlled by the Corporation is designed to result in larger distributions to both Mustang Resources, Inc. equity project participants and to holders of Mustang Resources, Inc. Senior Participating Notes.
Mustang Resources, Inc. focuses on creating value to participants in investment programs that it organizes. Investment programs focus on crude oil and natural gas production from areas with proven reserves, and normally on areas with existing revenue and production. In some instances, after significant geologic evaluation, Mustang Resources may acquire mineral rights not inclusive of current production, with intentions to develop the subject holdings.
The management of Mustang Resources evaluates many possible opportunities, drawn from its relationships with other oil development companies and with lease owners throughout its area of operations. Occasionally, joint venture projects with other oil development companies offer a shared risk aspect that is palatable; this is often the case in deeper drilling opportunities, where operating costs are significant.
In shallow production areas with lower acquisition, operation and development costs, complete control of a given opportunity makes more sense. Investment programs organized by the Company with respect to shallow production areas are generally designed to be low-risk opportunities based on existing oil production with historical precedence, rather than higher-risk “wildcatting” or exploratory drilling operations. Essentially, these programs involve the purchase of oil production income with the ability to incrementally drill new wells to increase existing production.
Tax Advantages. Recently enhanced tax legislation allows for up to 85% of development cost to be written off for tax purposes. In addition, 15 cents of every gross income dollar earned from said development is nontaxable. This translates into tax-advantaged returns for equity investors.
Specific Deployment of Capital. Unlike other investment companies in the oil and gas industry, Mustang Resources, Inc. identifies specific opportunities before raising capital. Because specific opportunities are targeted immediately by Mustang Resources, Inc., larger amounts of development tax credits are likely to accrue to equity investors in Mustang Oil projects than in similarly structured programs with unspecific operating plans.
Assets Producing Current Income. Mustang Resources, Inc. only
acquires oil leases that are currently producing income sufficient to
service its debt investors multiple times over. As such, the speculative
aspect of Mustang Resources, Inc. programs is significantly lower than
those involved in purely exploratory ventures.
Early Stage Production. The production realized by the Corporation from development on its properties will typically be from wells that are at the beginning stage of their production and should therefore have a long anticipated productive life, typically exceeding fifteen years per well.
Potentially Increasing Cash Flow. Successful incremental drilling on the properties controlled by the Corporation is designed to result in larger distributions to both Mustang Resources, Inc. equity project participants and to holders of Mustang Resources, Inc. Senior Participating Notes.
- Key Strategies
- Read about our corporate strategies
- Your Benefits
- Read all about the many benefits of participating in the oil and gas industry
- Tax Incentives
- Learn about the different tax incentives which you receive as an individual in the oil and gas industry
- Due Diligence Process
- Read more about this process
