Eagle’s Income & Development Funds provide investors with immediate cash flow from existing wells. Additional upside potential is provided through drilling new wells and pursuing targeted improvements such as mechanical reworks and recompletions. Essentially, the Fund acquires on behalf of its investors a percentage of ownership in a working oilfield –– and works alongside other Working Interest partners to maximize production and revenue potential.
Low Cost of Entry. With current oil prices in the $10-20/BBL range, we have the opportunity to acquire and target Leases at historic lows. For decades the Permian Basin has been a well-recognized, well-sought-after region that is known for leases with high price premiums. Consequently, when oil prices are lower, the cost to acquire leases, as well as the field costs to exploit those leases (workover costs, equipment, manpower) decrease markedly. This is the reason it is important to strike now, while prices are still manageable.
Income & Growth Opportunity. Your initial investment covers both the lease acquisition costs (with all associated producing wells) and the capital needed to pursue a predetermined––and detailed––development (new drilling) plan. Essentially, our strategy pools investor capital to acquire a sizable position in a working oilfield on behalf of investors. From there, our experienced management and operations teams work alongside our operating partners to maximize production and revenue potential on behalf of Eagle and our investors.
Tax Advantages. Active property development delivers substantial tax benefits including intangible drilling cost (IDC) tax deductions which can typically equal between 65 to 80% of the cost of drilling a well. In addition, leasehold cost deductions and an ongoing 15% of Gross Income tax exemption make Eagle’s programs an attractive choice for accredited investors seeking tax relief.
