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re: Question for you O&G experts
Posted on 1/24/25 at 12:55 pm to Mingo Was His NameO
Posted on 1/24/25 at 12:55 pm to Mingo Was His NameO
I’ve been an oil and gas attorney for over 20 years, and after performing 5 minutes off online research, I wouldn’t give those guys a dime of my hard earned money.
Maybe I’m wrong but the upside doesn’t seem worth the risk…at all.
Maybe I’m wrong but the upside doesn’t seem worth the risk…at all.
2
Posted on 1/24/25 at 1:51 pm to Boomer Rick
Again, thank you. I was doing due diligence myself and thought there would be some experts on the Money Talk board, let me see what they say.
Posted on 1/24/25 at 2:09 pm to anc
What is their own supopsed track record?
How much did they raise in earlier funds? What is the status of the portfolio?
How do they underwrite relative to offsets?
What assumptions do they use for commodity prices? Costs?
How much did they raise in earlier funds? What is the status of the portfolio?
How do they underwrite relative to offsets?
What assumptions do they use for commodity prices? Costs?
Posted on 1/24/25 at 2:58 pm to Boomer Rick
I agree.
I started my legal career in NW LA and E Texas. I’ve seen a million of these.
They mostly work like this: yes your money is invested but it’s usually in dogshit that has no chance at ROI, at least no return for you. In East Texas there’s a joke for suckers, “uh oh dry hole”.
Don’t play another man’s game.
I started my legal career in NW LA and E Texas. I’ve seen a million of these.
They mostly work like this: yes your money is invested but it’s usually in dogshit that has no chance at ROI, at least no return for you. In East Texas there’s a joke for suckers, “uh oh dry hole”.
Don’t play another man’s game.
Posted on 1/24/25 at 3:13 pm to anc
Its a common scam
Posted on 1/30/25 at 11:19 am to Strannix
How’d this go baw?
Posted on 2/7/25 at 10:15 pm to anc
Update:
I had the call and my CPA was able to join in. Went about an hour. Here are my takeaways:
1. It certainly is a valid way to get a tax write off. $100k minimum. 80% of what you put in is considered active ownership and can be taken off of W2/investment income in order to reduce tax liability.
2. The partners had about $22 million of their own money invested. Looking for about $50 million total investment on this round. They were sitting around $45 million.
3. The current project is between San Antonio and Houston and they have a potential buyer that will close Q2. That would be about a 25% return but would create a tax event, which would have defeated the purpose of why I was looking into this.
4. The guy seemed genuine, but it's evident that these funds are getting really popular in Dallas and Houston. He was honest that while they believed they would provide a return, there was a chance that nothing came out of these dated wells.
5. There was a worry that if oil dropped to below $60/bbl things would be tight for their operation.
6. In light of all this, I decided to pass. Just going to have to keep writing checks to the IRS.
I had the call and my CPA was able to join in. Went about an hour. Here are my takeaways:
1. It certainly is a valid way to get a tax write off. $100k minimum. 80% of what you put in is considered active ownership and can be taken off of W2/investment income in order to reduce tax liability.
2. The partners had about $22 million of their own money invested. Looking for about $50 million total investment on this round. They were sitting around $45 million.
3. The current project is between San Antonio and Houston and they have a potential buyer that will close Q2. That would be about a 25% return but would create a tax event, which would have defeated the purpose of why I was looking into this.
4. The guy seemed genuine, but it's evident that these funds are getting really popular in Dallas and Houston. He was honest that while they believed they would provide a return, there was a chance that nothing came out of these dated wells.
5. There was a worry that if oil dropped to below $60/bbl things would be tight for their operation.
6. In light of all this, I decided to pass. Just going to have to keep writing checks to the IRS.
Posted on 2/13/25 at 6:51 am to anc
quote:
So if I owe $80k in taxes, I can invest $100k, deduct the 80k and have no tax liability.
That's not how taxes work.
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