something NeW....
tired of the stock market?
dilution, whims, competition, a better mouse trap,dilution.....
a NeW DaY....and TAX SEaSoN is upon us.
Diamond A Energy a WORKING INTEREST
the breakdown...break it down....
Each 5% (Working Interest)
For a successful commercial oil/gas well:
Initial investment for well....$1,500.00
Completion of well.............$1,500.00
Total investment for a successful well ....$3,000.00 (US)
Total cost for an unsuccessful well
Cost to "plug" or seal well....$1,500.00*
Total cost for Dry hole ($1500.00)*.
Diamond A Energy Corporation will refund, to the investor, the portion on unused funds within 30 days after the well is "plugged".
*This is entirely tax deductible; see TAX BENEFITS
The Projections:
Table 1-A: The table below was derived from wells in the area of our lease and are intended only as a measurement of what those wells produce. No two wells are alike and no inference is made that our well(s) will attain similar results. Only the drilling of a well(s) and flow testing can ascertain production rates, if any.
CRUDE OIL
Production
Price
Per Month
Per Year
20 bbl/d
$26.00
$273.00
$3,276.00
25 bbl/d
$26.00
$341.25
$4,095.00
30 bbl/d
$26.00
$409.50
$4,914.00
35 bbl/d
$26.00
$477.75
$5,733.00
40 bbl/d
$26.00
$546.00
$6,552.00
45 bbl/d
$26.00
$614.25
$7,371.00
50 bbl/d
$26.00
$682.50
$8,190.00
55 bbl/d
$26.00
$750.75
$9,009.00
60 bbl/d
$26.00
$819.00
$9,828.00
65 bbl/d
$26.00
$887.25
$10,647.00
70 bbl/d
$26.00
$955.50
$11,466.00
These figures represent the anticipated return to the investor for each 5% working interest. These projections are taken from wells in the area to our lease and are not to infer we will obtain similar results if any.
*The above crude prices have been reduced from the daily quote to cover the costs of transportation to the refinery charged by the Oil company and Federal, State and Local Taxes along with Operating expense, Individual Income Taxes are not included.
COMMENT......
ok so $3000.00 (US) if unsucessful....
you get $1500.00 refund and 100% is written off on that years tax return.....ah but you got to gamble on a hit....(pssssst our lease is a producing lease BUT nothing is certain)
now if sucessful!!!!!!!!!!!!
you get to write off the TOTAL $3000.00 (most in first year 50% to 85%) and you MOST likely want to carry the rest over 7 years)....so you eventually (whatever is in YOUR interest) write off the TOTAL investment..........
Then on a sucessful well you garner the income from the above graph (less war with irag) over the LIFE of the well......15% of every dollar earned is.....................................................................TAX FREE
(US citizens only on the tax benfits) BUT on a SUCESSFUL well
a $3000 dollar investment on a well that makes lets say 55 bbl a day (very likely on wells on our property) will reap over $9000 a year for over.... our wells have produced for over 20 years..........
yeah baby!
BUTTT>>>>>>>>>>
remember only invest like we miss and you write the gamble OFF.....
and if we hit.....??? lets see ...maybe 9000 times 20, thirty years and 15% every year tax free times.......
Merry Christmas
AI
