Mustang Resources, Inc. focuses on creating value to Project Participants in the acquisition of currently producing oil leases with up-side drilling potential. These are generally low-risk opportunities based on existing oil production with historical precedence, rather than higher-risk “wildcatting” or exploratory drilling operations.  Essentially, we are buying 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 twenty five 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
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Your Benefits
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Tax Incentives
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Due Diligence Process
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