From 2017 to 2018 over $99,500 was invested for a 3% share in a field consisting of 6 wells. This wells were prepared, drilled and are now producing. 5 of the wells produce oil & gas and the 6th well is used as an injection well to add a waterflood component to production.
These wells are producing and flowing cash, approximately $1200 per month to the owner of this share.
The current owner believes that the approximately remaining $38,000 of tax write-offs can be used this year as only at the beginning of this year were these funds invested to make the wells more profitable.
A new owner should get at least $38,000 in write-offs, possibly the entire amount of the investment.
Oil & Gas from a tax perspective is an excellent vehicle for managing income and income taxes.
Buying this property now means not having to have risked any capital and simply getting a payoff which is tax advantaged as well as having substantial tax write-offs available.
About the Business
Number of Employees:
A 3% share in an existing field that is producing, has all roads, platforms and wells in place as well as the pipeline structure built out. The $1200 per month is a minimum.
Growth & Expansion:
Future opportunities to invest with the group of investors in other oil and gas projects.
Asking Price: $148,500 Gross Revenue: Not DisclosedCash Flow: $14,400EBITDA: $14,400Inventory: Not Disclosed FF&E: Not Disclosed included in asking priceReal Estate: Not Disclosed Share this business:
Explanation of Financial Terms
The total asking price of the business for sale.
All income the business received before any cost-of-sales or expenses have been deducted.
Arrived at by "starting with your net (before tax) profit. Then, add back in any payments made to the owner, interest and any depreciation of assets." For example, if the net profit before taxes was $100,000 and the owner was paid $70,000 then the cash flow is $170,000.
Earnings Before Interest, Taxes, Depreciation and Amortization.
The value of the merchandise, raw materials, and finished and unfinished products which have not yet been sold. If there is no inventory price listed then the seller did not provide it.
Furniture, fixtures and equipment that will remain with the business, such as desks, office cubicles, decor elements of a restaurant or showroom, computers and office machines, pots and pans, dishes, display cases, manufacturing equipment, etc., depending on the type of business.
The value of property owned by the business. May be included in the asking price or offered separately. If no real estate value is listed, it was not provided by the seller.
Cash Flowing Oil & Gas Producing Property for the Tax Savvy
The information on this listing has been provided by either
the seller or a business broker representing the seller. BizQuest has no interest
or stake in the sale of this business and has not verified any of the information
and assumes no responsibility for its accuracy, veracity, or completeness. See our
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