Invest in Oil Wells
At Allied Resource Partners we establish oil and gas investment limited partnerships. This structure allows potential partners, like you, to acquire a working interest in the drilling, testing, and completion phases of the wells. One of the key advantages of holding a working interest in an oil well is the direct income you receive from the sale of the oil monthly. Additionally, investors benefit from significant tax advantages: an immediate tax deduction of 85% of your investment in the year.
How to Invest in Oil Wells
When you invest with us, you're acquiring a "Working Interest" in the oil well project. The term "1 unit" is commonly used to represent a 1% working interest in the well. This means that each unit you purchase entitles you to a pro‑rata share of production revenue and any associated distributions from the well’s operation.
Investing in a working interest allows you to directly participate in the oil and gas wells, offering a tangible connection to the energy sector and the potential for financial returns based on the well's performance.
At the outset of the oil and gas limited partnership, there is a total of 100% working interest or, another way of saying, 100 units available in the well. Investors, or as I prefer to call them, partners, have the flexibility to purchase one or multiple units in each project, allowing them to tailor their investment according to their strategy. This approach enables partners to decide on the level of involvement and potential return they seek from the project, ensuring that participation aligns with their individual investment goals and risk tolerance.
Our drilling operations predominantly target depths of around 5,000 feet
In Kansas, particularly within the counties where we drill oil and gas wells, the pay zones—geological formations with the potential to produce oil and gas—are abundant and varied. These productive layers are typically found at depths ranging from around 3,600 to 5,000 feet. Within this range, it’s possible to encounter up to, if not more than, 25 distinct pay zone formations rich in oil and gas. This diversity in pay zones enhances the potential for successful extraction, allowing us to target multiple reservoirs within a single drilling operation. Such geological variety underscores the prolific nature of Kansas’s subsurface resources and the strategic opportunities it presents for oil and gas exploration and production.
