Mineral Ownership, Royalties, Overriding Royalties• or Wells in Primary Production
•No Cash Calls on lease upkeep, improvements, or for any development operations.
•Monthly distributed cash flow is paid by Operators, and major or large independent companies – all wells are producing and cash flow projections are based on revenue per check stub verification – plus there is no drilling risk or guess work.
•Additional Cash-Flow Growth Potential as when ‘operators’ or big independents, or major oil companies choose to develop leases further – so there is ‘No other or future Costs billed to the Royalty Owner’.
•Reinvest Capital From Real Estate Portfolios – and thus Compatible with 1031 Exchange. You can typically defer ALL Capital Gains Taxes in a sale of other assets such as real estate.
•Cash Flow Paid Monthly For Reserve Life of Wells or until the wells or field production stops.
•Wells can have a Long Reserve Life. (30+ years)
•No Environmental Liability or recourse actions by the states.
•15% Tax Depletion Allowance On Cash Flow.
Royalty owners enjoy their share of monthly cash flow from wells producing on their properties. They are not financially responsible for lease operating costs (LOE’s) associated with monthly upkeep, exploration or any development or other costs associated with any oil field improvments or searches for oil & gas production.
Potential Tax Benefits:
•Capital Gains Tax Deferral via the 1031 Exchange program. This type of program is usually eligible as replacement property for individuals seeking to complete a 1031 Exchange where a like or income is realized.
•The Annual percentage depletion allowance is typically 15 – 24% of the Gross Income.
Call or write for information. Editor
