Investment Opportunity

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https://www.investopedia.com/articles/07/oil-tax-break.asp

(Excerpts from Investopedia article)

When it comes to tax-advantaged investments ... one commodity continues to stand alone above all others:  OIL

Several major tax benefits are available for oil and gas investors that are found nowhere else in the tax code ... use them to fire up your portfolio.

 * Intangible Drilling Costs: These expenses generally constitute 65-80% 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. As long as it starts to operate by March 31 of the following year, the deductions will be allowed.
 

 * Tangible Drilling Costs: These expenses are also 100% deductible, but must be depreciated over seven years. 

 * Small Producer Tax Exemptions: This is perhaps the most enticing tax break for small producers and investors. This incentive, which is commonly known as the "depletion allowance," excludes from taxation 15% of all gross income from oil and gas wells. This special advantage is limited solely to small companies and investors. 

 * Lease Costs: These include the purchase of lease and mineral rights, lease operating costs and all administrative, legal and accounting expenses. 

Note from Renovo Oil:   To enable your tax adviser to evaluate how investing in oil might benefit your portfolio, the breakdown of the $4.1 million estimated cost to drill and complete the Shamrock 1-25H is as follows:

 - Intangible Drilling Cost = $3,550,000

 - Tangible Drilling Cost    =  $  550,000

Every investor's tax situation is different and a tax professional should be consulted to determine the actual impact of the Shamrock investment on each investor's individual tax liability.