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.
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
- 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
