Embed Size (px)
Citation preview
ENERGY INVESTMENT
PARTNERS, LLC
DALLAS, TX
LaGrange Prospect
Natchez, MS
BOPD $40 $60 $80 $90
60 $540 $810 $1,080 $1,215
50 $450 $675 $900 $1,013
40 $360 $540 $720 $810
30 $270 $405 $540 $608
20 $180 $270 $360 $405
10 $90 $135 $180 $203
BBL's $40 $60 $80 $90
25,000 $7,500 $11,250 $15,000 $16,875
50,000 $15,000 $22,500 $30,000 $33,750
100,000 $30,000 $45,000 $60,000 $67,500
150,000 $45,000 $67,500 $90,000 $101,250
200,000 $60,000 $90,000 $120,000 $135,000
265,000 $79,500 $119,250 $159,000 $178,875
Estimated Monthly Gross Income - Per 1%
Estimated Total Recovery - Per 1%
2019 Recovery 60 BOD x 365 Days = 21,900 BOUltimate Recovery: 265,000 BO - 21,900 BO = 243,100 BO RemainingProduce 2020 to 2030 or 2035?
***$810 1st Year Monthly Income
***$11,250 Investment - Breakeven at 25,000 Barrels @$60 BBL
($7,800 + $2,850 + Monthly Operation Expense)PAYOUT 14 MONTHS
INCOME- EXPENSE SCHEDULE
WELL #1
Turnkey Drilling Cost Completion Cost Total Cost Tax Deductions
1% -- $ 7,800 $ 2,850 $ 10,650 $ 27,261
5% -- $39,000 $14,250 $ 53,250 $136,305
10% -- $78,000 $28,500 $106,500 $272,610
Monthly
Net Income $40 BO $60 BO $80 BO Payout (@ $60 BO)
1% $ 540 $ 810 $ 1,080 13 Months
5% $2,700 $4,050 $ 5,400 13 Months
10% $5,400 $8,100 $10,800 13 Months
Total Net Return $40 BO $60 BO $80 BO
1% $79,500 $119,250 $159,000
ROI 7.46 to 1 11 to 1 15 to 1
5% $397,500 $596,250 $795,000
ROI 7.46 to 1 11 to 1 15 to 1
10% $795,000 $1,192,500 $1,590,000
ROI 7.46 to 1 11 to 1 15 to1
Finding Cost is $6 barrel
WELL #2
Drill & Complete - 1% $10,650
Tax Deductions - 1% $27,261
Total Return - 1% (@ $60BO) $87,000
ROI 8 to 1
Drilling Cost - $7,800.00 per 1%Intangible Drilling Cost (IDC) approximately 85% deductible in the year paid.
Completion Cost - $2,850.00 per 1%Completion Cost (cost to run production casing, test and equip the well)
IDC:Drilling & Completion Cost $10,650 X 85% = $9,053
Your Participation Interest 1% X $9,053 = $9,053
TDC:Drilling and Completion Cost $10,650 X 3% = $320
Your Participation Interest 1% X $320 = $320
Dry Hole 100% of Investment Funds Deducted in the Year Paid
BBL's $40 $60 $80 $90
25,000 $1,125 $1,688 $2,250 $2,531
50,000 $2,250 $3,375 $4,500 $5,063
100,000 $4,500 $6,750 $9,000 $10,125
150,000 $6,750 $10,125 $13,500 $15,188
200,000 $9,000 $13,500 $18,000 $20,250
265,000 $11,925 $17,888 $23,850 $26,831
Depletion AllowanceYour Participation Interest 1% X $17,888 = $17,888
Total Drilling, Completion and Depletion Tax Deductions $27,261
Worksheet to Estimate Your Tax DeductionsDrilling and Completion Cost - Per 1%
Total Deduction Drilling & Completion Cost (1%) - $10,650.00
Tangible Drilling Cost (TDC) - 15% is Depreciated over a 5 year period using the Accelerated Cost Recovery System (ACRS)
Depletion Allowance - 15% of Gross Income (Per 1% Investment)
$9,373 / 1%
Drilling Cost - $7,800.00 per 1%Intangible Drilling Cost (IDC) approximately 85% deductible in the year paid.
Completion Cost - $2,850.00 per 1%Completion Cost (cost to run production casing, test and equip the well)
IDC:Drilling & Completion Cost $10,650 X 85% = $9,053
Your Participation Interest 5% X $9,053 = $45,265
TDC:Drilling and Completion Cost $10,650 X 3% = $320
Your Participation Interest 5% X $320 = $1,600
Dry Hole 100% of Investment Funds Deducted in the Year Paid
BBL's $40 $60 $80 $90
25,000 $1,125 $1,688 $2,250 $2,531
50,000 $2,250 $3,375 $4,500 $5,063
100,000 $4,500 $6,750 $9,000 $10,125
150,000 $6,750 $10,125 $13,500 $15,188
200,000 $9,000 $13,500 $18,000 $20,250
265,000 $11,925 $17,888 $23,850 $26,831
Depletion AllowanceYour Participation Interest 5% X $17,888 = $89,440
Total Drilling, Completion and Depletion Tax Deductions $136,305
Worksheet to Estimate Your Tax DeductionsDrilling and Completion Cost - Per 5%
Total Deduction Drilling & Completion Cost (1%) - $10,650.00
Tangible Drilling Cost (TDC) - 15% is Depreciated over a 5 year period using the Accelerated Cost Recovery System (ACRS)
Depletion Allowance - 15% of Gross Income (Per 1% Investment)
$46,865 / 5%
Drilling Cost - $7,800.00 per 1%Intangible Drilling Cost (IDC) approximately 85% deductible in the year paid.
Completion Cost - $2,850.00 per 1%Completion Cost (cost to run production casing, test and equip the well)
IDC:Drilling & Completion Cost $10,650 X 85% = $9,053
Your Participation Interest 10% X $9,053 = $90,530
TDC:Drilling and Completion Cost $10,650 X 3% = $320
Your Participation Interest 10% X $320 = $3,200
Dry Hole 100% of Investment Funds Deducted in the Year Paid
BBL's $40 $60 $80 $90
25,000 $1,125 $1,688 $2,250 $2,531
50,000 $2,250 $3,375 $4,500 $5,063
100,000 $4,500 $6,750 $9,000 $10,125
150,000 $6,750 $10,125 $13,500 $15,188
200,000 $9,000 $13,500 $18,000 $20,250
265,000 $11,925 $17,888 $23,850 $26,831
Depletion AllowanceYour Participation Interest 10% X $17,888 = $178,880
Total Drilling, Completion and Depletion Tax Deductions $272,610
Worksheet to Estimate Your Tax DeductionsDrilling and Completion Cost - Per 10%
Total Deduction Drilling & Completion Cost (1%) - $10,650.00
Tangible Drilling Cost (TDC) - 15% is Depreciated over a 5 year period using the Accelerated Cost Recovery System (ACRS)
Depletion Allowance - 15% of Gross Income (Per 1% Investment)
$93,730 / 10%
Natchez
0
'
0
'
West Block
East Block
B
a
r
S
a
n
d
PropLoc 1
PropLoc 2
30'Sd
30'Sd
36'Sd
30'Sd
20'Sd
2'Sd
4
'
9
'
1
4
'
19'
9'
14'
19'
1
9
'
1
4
'
9
'
4
'
LaGrange Field
Adams County, Mississippi
0 500'
September, 2014
100' 200' 300' 400'
Stewart "B" Net Pay
Pledger Operating
C.I.= varies
Grid North
NAD27-Ms-West
O
rig
in
a
l
o
w
c
4
2
2
9
'
P
r
e
s
e
n
t
o
w
c
4
2
3
4
'
ow
c 4244'
Cum: 202,739 BO
IP: 5/77, 54 BO + 290 BW,
pumping, CP: 380#
Cum: 684 BO
IP: 6/93, 50 BO + 750 BW,
pumping, CP: 100#,
producing out backside
Cum: 36,847 BO
IP: 5/72, 62 BO + 0 BW,
flowing, CP: 380#
Cum: 8,999 BO
IP: 9/85, 60 BO + 0 BW,
flowing, CP: 120#
EUR: 223.215 ac ft x 650 BO/ac ft = 145,090 BO
EUR: 311.41 ac ft x 850 BO/ac ft = 264,898 BO
(does not include Bar Sand)
82
78
81
79
-4
2
6
0
-
4
2
5
0
-4239
-4232
-4228
-4214
-4224
-4209
-4218
-4238
-4235
-4214
-4223
-4216
-
4
2
3
5
-
4
2
3
0
-
4
2
2
5
-4
2
1
5
-4210
-
4
2
2
5
-
4
2
3
0
-4
2
2
0
-
4
2
4
0
-
4
2
4
0
-
4
2
3
5
-
4
2
4
0
-
4
2
4
5O
rig
in
a
l
P
r
e
s
e
n
t
o
w
c
4
2
3
4
'
Grid North
NAD27-Ms-West
o
w
c
4
2
2
9
'
C
h
a
n
n
e
l
S
a
n
d
Cum: 202,739 BO
IP: 5/77, 54 BO + 290 BW,
pumping, CP: 380#
Cum: 684 BO
IP: 6/93, 50 BO + 750 BW,
pumping, CP: 100#,
producing out backside
Cum: 36,847 BO
IP: 5/72, 62 BO + 0 BW,
flowing, CP: 380#
Cum: 8,999 BO
IP: 9/85, 60 BO + 0 BW,
flowing, CP: 120#
-4223
-4219
-4232
-
4
2
3
0
-
4
2
2
5
-
4
2
3
5
ow
c 4244'
LaGrange Field
Adams County, Mississippi
0 500'
September, 2014
100' 200' 300' 400'
Stewart "B" Structure
Pledger Operating
C.I.=5'
A
A'
PropLoc 2
PropLoc 1
30'Sd
30'Sd
36'Sd
30'Sd
20'Sd
2'Sd
0
'
0
'
West Block
East Block
B
a
r
S
a
n
d
PropLoc 1
PropLoc 2
30'Sd
30'Sd
36'Sd
30'Sd
20'Sd
2'Sd
4
'
9
'
1
4
'
19'
9'
14'
19'
1
9
'
1
4
'
9
'
4
'
LaGrange Field
Adams County, Mississippi
0 500'
September, 2014
100' 200' 300' 400'
Stewart "B" Net Pay
Pledger Operating
C.I.= varies
Grid North
NAD27-Ms-West
O
rig
in
a
l
o
w
c
4
2
2
9
'
P
r
e
s
e
n
t
o
w
c
4
2
3
4
'
ow
c 4244'
Cum: 202,739 BO
IP: 5/77, 54 BO + 290 BW,
pumping, CP: 380#
Cum: 684 BO
IP: 6/93, 50 BO + 750 BW,
pumping, CP: 100#,
producing out backside
Cum: 36,847 BO
IP: 5/72, 62 BO + 0 BW,
flowing, CP: 380#
Cum: 8,999 BO
IP: 9/85, 60 BO + 0 BW,
flowing, CP: 120#
EUR: 223.215 ac ft x 650 BO/ac ft = 145,090 BO
EUR: 311.41 ac ft x 850 BO/ac ft = 264,898 BO
(does not include Bar Sand)
82
78
81
79
-4
2
6
0
-
4
2
5
0
-4239
-4232
-4228
-4214
-4224
-4209
-4218
-4238
-4235
-4214
-4223
-4216
-
4
2
3
5
-
4
2
3
0
-
4
2
2
5
-4
2
1
5
-4210
-
4
2
2
5
-
4
2
3
0
-4
2
2
0
-
4
2
4
0
-
4
2
4
0
-
4
2
3
5
-
4
2
4
0
-
4
2
4
5O
rig
in
a
l
P
r
e
s
e
n
t
o
w
c
4
2
3
4
'
Grid North
NAD27-Ms-West
o
w
c
4
2
2
9
'
C
h
a
n
n
e
l
S
a
n
d
Cum: 202,739 BO
IP: 5/77, 54 BO + 290 BW,
pumping, CP: 380#
Cum: 684 BO
IP: 6/93, 50 BO + 750 BW,
pumping, CP: 100#,
producing out backside
Cum: 36,847 BO
IP: 5/72, 62 BO + 0 BW,
flowing, CP: 380#
Cum: 8,999 BO
IP: 9/85, 60 BO + 0 BW,
flowing, CP: 120#
-4223
-4219
-4232
-
4
2
3
0
-
4
2
2
5
-
4
2
3
5
ow
c 4244'
LaGrange Field
Adams County, Mississippi
0 500'
September, 2014
100' 200' 300' 400'
Stewart "B" Structure
Pledger Operating
C.I.=5'
A
A'
PropLoc 2
PropLoc 1
30'Sd
30'Sd
36'Sd
30'Sd
20'Sd
2'Sd
Oil Reservoir
Oil Reservoir
A&N Producing & Meyers & Lasher - Hazl ip-0-aig Un it #1
APl-2300120 773
Sec. 81, T7N-R2W
D.F. 408'
T.D. 6516'
Comp. 04/03/72 in Wilson
Comp. 09/16/85 in Stewart '8' - Petf 4617' - 4622'
I.P. 60 80 / 0 8W - Cum 8,999 80 / 404,234 8W
1.4 % oil last prod. 07/91 - Casing Collapsed@ 3000'
.n
In
A-lo •MSHORT NORMAL
INDUCTION
10
!IQ.._,. ___ •••••-•-••••• ■ -••.,.■JR.
�•
... +····
,0... ·---Hl."-tl.-... � ••••• l��-
..tnoo
'
RESISTIVITY
ohms-m'2/m
l
6ff40 INDUCTION
2.000 I
(;OQO I
; I;,.._.
�-1· ---·-
..
ll1-=--�1tit:.-:1=--:�t:,.:,_t,-:,��'"=-.t"'=._�"t-=--t.�l,itt_-:.,t.-=-.i_r-:-_--.:-.t_,-=---ir:._1+'\�1l._-:_'t.
- .--! ]
i J ; �E� �-\\t:�\=�:t�e�\\�\1tt:�t1��\
=�t=�\
=�tt:�\
=� J
_,._._ ____ 4 ____ ,._�1- 0
i 'i I I
I I
Ill,,. ' I ,•·• .,, .
' I ' 1' • ' -+- ..•
I '
- . - ·""II � J.
:·• r ,I_._, .a.
..
--- -- � I . , - �- - --.,
.... '
I -
• ..
... .
. . ... ....... I· . I -
·----·-r· ::iA
... !!> I i;
'I ..
■
t
: 1--· -
. .J__ --1- .
- - -- . I' . ,,.
,
� J • --·· - -... ••
•
----
Q
4000
-
·--
11 ;
Overlay of Proposed Replacement Well #1 (RED) vs
Hazlip #1 Producer @202,000 BO (BLACK)(Well #3)
Transitional Zone
Water Zone
Oil
Column
ENERGY INVESTMENT PARTNERS, LLC. 400 North St. Paul Street, Suite 720, Dallas, TX 75201
Reducing Tax Payment Liability Domestic Energy Production Allows for a Litany of Tax Incentives Available for
& Gas Investors
• Intangible Drilling Cost - These include everything but the actual drilling equipment. These expenses generally constitute 100% of the total cost of drilling a well and are 100% DEDUCTIBLE in the year incurred.
that are found NOWHERE else in the tax code.
• Tangible Drilling Cost - actual direct cost of the drilling equipment. These expenses are also 100% DEDUCTIBLE but must be depreciated over seven years.
• Considered Active Income - Tax Code specifies that a working interest in oil & gas well is Active Income & therefore all net losses incurred can be offset against other income such as wages, capital gains & interest.
• Depletion Allowance - Perhaps the most enticing tax break for investors. This incentive EXCLUDES FROM TAXATION 15% of ALL GROSS INCOME from oil & gas wells.
• Lease Costs - include purchase of lease & mineral rights, lease operating costs, all administrative, legal & accounting expenses. 100% DEDUCTIBLE in the year they are incurred.
• NO INCOME OR NET WORTH LIMITATIONS *To stay eligible for these tax incentives, investor must limit ownership to 1,000 barrels oil/day.
No Other Investment Category in America Can Compete with the Plethora of Tax Incentives that are Available to the Oil & Gas Industry.
Shelter Income - Reduce Tax Liability. Any payment made will be deductible in the year the contribution is made. Any un-used portion may be carried forward.
Great Secondary or Alternative Retirement Plan – Sheltering Income, Creating Future Income + Generating Substantial Tax Deductions for Next 10-20 Years.
Active Working Interest Partner in Drilling Program Ability to Return Client Monthly Income Check
Energy Investment Partners Company & Individual Profiles Operator and Producer in the Rockies, Mid-Continent, Northeast, OK, TX & Gulf Coast
EIP’s Current Exploration Activities: -Denver Julesburg (DJ) Basin: D-J Sandstone Structures and Paleozoic Resource Play
-Anadarko Basin: Central Kansas Uplift - Miss Chat Lime Play in Kansas
-Las Animas Arch Southeastern Colorado: Vertical & Horizontal Play
-Texas: Resource Play -Southeastern US: Horizontal Oil Play
Northern Michigan Oil and Gas Corporation: Operator & Producer in the Michigan Basin
NMOG’S Current Exploration Activities:
-Antrim Shale, Niagaran Reefs, Trenton, Glenwood and PdC Deep Gas Play -Michigan Basin: 3D Horizontal Oil Play
All Prospects are generated in house by our geologists specializing in the geographical basins
Our Geologists have 30+ years exploration experience in their specialty
Consulting Geophysicist & Petroleum Engineers are used for special projects
Our staff includes Landmen, Geo-Techs, Bookkeeping and Administrative Support
Areas of Non-Operating Participation but Areas of Expertise Include:
Louisiana: Miogyp & Wilcox Mississippi: Wilcox Montana: Red River Play
North Dakota: Mon-Dak Play West Texas: Ellenberger formation East Texas: James Lime
Piceance Basin: Mesa Verde Sands Powder River Basin: Muddy Sandstone
Green River & Big Horn Basins, Williston Basin; Wind River Basin; Illinois Basin & East of the MS River
President: John Robert (Bob) Flournoy – Petroleum Landman (PLM), University of Texas District Landman: Shell Oil Company Land Manager: Traverse Corporation in Michigan Basin Founder: Northern Michigan Oil & Gas Corporation and Energy Investment Partners
Exploration Manager Rocky Mountain Division: Dennis Alan Allison - Master of Geology Southern Illinois University and BS Geology, Ball State Univ. Exploration Geologist: Texaco in Arkansas/ Louisiana, Illinois and Michigan Basin; Nance Petroleum and TXO in the Rockies & the Denver Basin as an independent operator & producer
Exploration Manager Michigan Basin: Dan E. Pfeiffer - BS and Maters of Geology at Bowling Green State University Exploration Geologist: Texaco in West Texas District Manager: Sullivan Company Senior Geologist: Patrick Petroleum in the Michigan Basin
Consulting Geophysicist: Jim Womble
Landman: Tanner Flournoy - Management Degree from Southwest Texas State University.
Investor Relations: J.R. Flournoy - Ministry-Pensacola Christian College
Consultants: We use local knowledgeable drilling, completion and lease operating companies.
ENERGY INVESTMENT PARTNERS
5-PROSPECT DEVELOPMENT PROGRAM
1%-Income and Expense Summary For Five Prospects
MS $ 7,800 $2,850 $10,650 $ 810 13 $159,000 $148,350 15-1 1% Drilling Comp Total Mo Inc Payout Gross Net ROI
KR $26,300 $6,924 $33,224 $1,470 23 $ 295,633 $258,809 9-1 MI $ 7,500 $3,500 $11,000 $1,000 11 $ 67,000 $ 56,000 6-1 Sunny $21,781 $21,781 $2,025 10 $ 115,920 $ 90,139 4.5-1
Total $84,036 $13,274 $97,310 $7,330 Avg. 13 Mo. $731,213 $599,793 Avg. 6.5-1 Tew $20,655 $20,655 $2,025 10 $ 93,660 $ 69,005 3.5-1
INCOME, EXPENSE & TAX CONSIDERATION SUMMARY 5 PROSPECTS Tax Considerations-1%______________________ Gross-Net Income-1%____
MS $10,650 $4,000 $ 23,850 $ 38,500 $ 159,000 $10,650 $ 148,350 Drill-Complete LOE Depletion Total Gross Inc D&C Net Income
KR-x $99,224 $7,200 $532,139 $638,563 $3,547,596 $99,224 $3,448,372 Tew-y $41,310 $4,000 $ 28,098 $ 73,408 $ 187,320 $41,310 $ 146,010 MI $11,000 $7,500 $ 10,050 $ 28,550 $ 67,000 $11,000 $ 56,000
Total $183,965 $26,700 $611,525 $822,190 $4,076,836 $183,965 $3,892,871 Sunny $21,781 $4,000 $ 17,388 $ 43,169__ $ 115,920_ $21,781__ $_ 94,139_
X-Initial well plus 11 development wells Y-Initial well plus 1 development well
