Your Subtitle text

American Oil Investments

(877) We-Hit-Oil 
or (877) 934-4864

Oil Wells for Sale

Can I purchase oil wells directly?

Yes, although most wells are sold by brokers. Again, one should check the background of a broker and the affiliated company before investing. An investor can also call local state oil and gas regulatory agencies to verify a company’s drilling history and substantiate its claim of past successes.

What are the tax benefits in an oil and gas investment?

The Tax Reform of 1986 provided a slew of tax exemptions that benefitted both investors and small producers. These include:
  1. Tangible drilling costs – refer to the actual direct costs of drilling equipment. These are 100 percent deductible over seven years.
  2. Intangible drilling costs – refer to miscellaneous items like labor, chemicals, mud, and grease. They constitute about 60 to 80 percent of the total drilling cost and are 100 percent deductible in the year incurred, whether the well was productive or not.
  3. Small producer tax exemptions – also known as depletion allowance, 15 percent of all gross income from oil and gas wells are excluded from taxation. This is limited solely to small companies, or those that produces less than 50,000 barrels of oil per day. Entities that own more than 1,000 barrels of oil, or 6 million cubic feet of gas per day are excluded as well. This is by far, the most attractive benefit for local investors.
  4. Lease costs – these expenses include purchase of lease and mineral rights, lease operating costs, administrative, legal, and accounting expenses every year. These are 100 percent deductible.
  5. Alternative minimum tax – refers to excess drilling costs that have been exempted as a preference item on the alternative minimum tax return.

What is wildcatting?

Wildcatting, in oil industry parlance, refers to exploration and drilling of oil wells in wild areas with no previous history of productivity. Because it does not entail much geologic research, this is a risky form of oil exploration.

Are there oil wells in Texas for sale?

Although oil does not figure predominantly in Texas’s economy at present, there are still wells that are up for sale. For more information, please verify at The Railroad Commission of Texas.

How much oil deposit is there in Texas?

Texas has the largest share of crude oil in the U.S., and has been producing it for more than a century. It is said that the Lone Star state has approximately 190 billion barrels of oil reserves, although only a third of it has been produced. Much of what remains lie deeper, which makes oil production expensive and difficult.

How is oil and gas formed?
Oil and natural gas, collectively known as hydrocarbons, are formed prehistorically through animal and plant remains buried within the earth. They settled on the ocean floor together with the sediments, which can be as small as molecules or as big as boulders. In later periods, these layers of organic materials and sediments are covered by more layers of sediments until they are converted into rock layers.
Web Hosting Companies