With less than 2 weeks left in the year, I know many of you are looking forward to putting 2020 in the rearview. But it wasn’t all bad news this year – the CARES Act stimulus legislation provided lucrative tax benefits for oil and gas investors. In order to help you understand and possibly take advantage of this one-time benefit, we’ve put together a whitepaper that you can download here.
There’s still time to capture these tax benefits by making investments up until the December 31st deadline. As you’ll see in today’s update, we have active projects open for investment today that will qualify for the CARES Act deductions.
THUNDERSTRUCK YIELD FUND
The first well of the Thunderstruck Yield Fund has broken ground, and we expect initial drilling results before Christmas. Shortly thereafter, Paleo will then begin preparing for the second project well.
There is still room for investment in this project. Paleo will drill the requisite number of wells in connection with the capital raised in 2020 on or before March 31, 2021. That means your investment, if made by year-end, will be eligible for the CARES Act tax deductions.
FIRST INCOME FUND OPENING FOR INVESTMENT
The first Income Fund is officially open for investment now. As a reminder, this Fund avoids the risk of exploration and development. Instead, the Fund buys into already-producing wells, providing an immediate source of income from day one.
The first investment opportunities that you see on the website come from two very strong producing wells in Texas. These wells are operated by Ironroc Energy, and investors will receive monthly distributions. Based on our analysis of the present value of the reserves and corresponding expected production rates, we’re targeting a yield of 10% – 15% per year, based on current NYMEX strip pricing. Importantly, these yields have upside from any increase in prices over the next few years. If you are interested in learning more, Click here to join the email list.
WILDCAT FUND UPDATE
We have two updates on our current Wildcat Funds, starting with the Appling prospect. Our partner, Ricochet Energy, will spend the next few weeks preparing the drill site and plans to break ground in January. We will keep this fund open until 12/31.
The Riverdale prospect which was postponed during the uncertainty associated with the pandemic is scheduled to commence drilling this month. The drilling rig will be on location to begin drilling before Christmas. This is a 9,500′ well with two main objectives. We will share drilling results as soon as we have them.
Coming soon… Alternative Energy Fund
Over the last 12 months, the EnergyFunders team has been searching for an alternative energy investment with a good operating partner with extensive experience in this space. We recently identified a solar investment project that meets our investment criteria and will provide goodwill for the surrounding community.
We believe this solar project will provide a low-risk yield, plus a 22% tax credit. We are currently negotiating the opportunity and anticipate opening the project up for investment in the new year.