Kansas Oil & Gas 1% Net Royalty in Perpetuity

1% Working Interest: Monthly Cash Flow ($3,750.00/mo.)

This project lies in the Cherokee Basin just to the south of the Bourbon Arch, which borders Kansas and Oklahoma. This area is called the "Coalbed Methane" formation, which can be seen from the perforations on the cross section of the Sandstones, Bartlesville and Squirrel area of the reservoirs.
Major structural features show that the Bartlesville Sandstone, Squirrel Sandstone and Mississippian are productive formations.

Oil Field Production:
• Estimated oil reserves are 926,500 BBL
• Surrounding fields realized production of 719,217 barrels
of oil in 2022
• 50 vertical drilling locations, never drilled
• 800 to 900 feet vertical drill holes

HIGH CASE - $2,175,000 1st year Net Income
Months 1 & 2
• 25 BOPD per well for a 60 Day Flush Period
• 250 BOPD production for 60 Days, collectively for all 10 wells
• $50 per barrel net income (N.O.I) or cash flow
• $750,000 Net Income for 60 Days

High Case
Month 1 to 2 (250 Barrels/day)
Total Net Revenue $ 750,000.00
Monthly Cashflow (1% WI) $ 3,750.00
Total Cashflow (1% WI) $ 7,500.00

Month 3 to 7 (125 Barrels/day)
Total Net Revenue $ 937,500.00
Monthly Cashflow (1% WI) $ 1,875.00
Total Cashflow (1% WI) $ 9,375.00

Month 8 perpetuity 65 Barrels/day
Total Net Revenue $ 1,657,500.00
Monthly Cashflow (1% WI) $ 975.00
Total Cashflow (1% WI) $ 16,575.00

$25,000 investment includes 1% Working Interest, purchase and drilling costs for 10 vertical wells
in Perpetuity.

• Economics based on net $50 per barrel oil.
• Total Net Revenue is before administrative expense, wages and taxes.
• All Dollar amounts are in USD

Also, we can offer the benefits of a "K-1" (Schedule E of Form 1040) tax-advantage on an oil investment you can use against your personal income. A K-1 is a major tax benefit available for oil and gas investors. It enables investors to incorporate their share of the Venture's financial results into their individual tax returns. These expenses generally constitute 60-80% of the total cost of drilling a well and are 100% deductible in the year incurred. Furthermore, it doesn't matter whether the well actually produces or even strikes oil. K-1's are issued to all partners by March 15th each year. All royalty income is re-portable on Schedule E of Form 1040.

Working interests are not considered to be securities. This type of arrangement is similar to a general partnership in that each participant has unlimited liability. But, the SEC requires that investors for many oil and gas partnerships be accredited, which means that they need to meet certain income and net worth requirements.