An oil & gas acquisition, development and management company
An oil & gas acquisition, development and management company
The American O&G sector is unique in terms of investment, tax benefits and a pro-industry environment in which increasing the total O&G production is a core pillar of the American economy & government.
Seize the opportunity to invest in oil and gas assets now. With record-breaking growth and consumption alongside reduced drilling and operational costs, investors are poised for robust returns.
Decrease your taxable income by leveraging tax code-protected deductions and benefits
Investors will find no hidden fees or intermediary expenses. You directly own tangible assets through joint ventures
Accredited investors can potentially deduct up to 85%* of their initial investment within the first year
Investors can anticipate payouts within 90-120 days for productive assets.
BNR is a independently owned entity specializing in the acquisition and management of oil and gas assets. With a focus on the Williston Basin, in Montana & North/South Dakota, we are focused on acquisition and development of O&G assets through recompletions and reworking of the wells
The intangible expenses associated with drilling, such as labor, chemicals, mud, and grease, typically constitute around 65 to 80% of the total well cost. These costs are categorized as "Intangible Drilling Costs (IDC)" and are eligible for deduction in the year the capital is invested, irrespective of whether drilling commences until March 31 of the subsequent year. (Refer to Section 263 of the Tax Code for details.)
The entire investment portion allocated to equipment, known as "Tangible Drilling Costs (TDC)," is fully tax-deductible, constituting 100% of the investment. In the scenario outlined, any residual tangible costs can be deducted through depreciation spread over a seven-year period. (Refer to Section 263 of the Tax Code for further information.)
The 1990 Tax Act introduced special tax incentives aimed at benefiting small companies and individuals involved in oil and gas drilling. One such incentive, termed the "Percentage Depletion Allowance," is designed to encourage participation in this industry. Notably, this tax advantage is not extended to large oil companies, retail petroleum marketers, or refiners processing more than 50,000 barrels per day. Additionally, entities with average daily production exceeding 1,000 barrels of oil (or 6,000,000 cubic feet of gas) are ineligible. Under the "Small Producers Exemption," 15% of Gross Income (not Net Income) derived from an oil and gas producing property is exempt from taxation
The 1990 Tax Act introduced special tax incentives aimed at benefiting small companies and individuals involved in oil and gas drilling. One such incentive, termed the "Percentage Depletion Allowance," is designed to encourage participation in this industry. Notably, this tax advantage is not extended to large oil companies, retail petroleum marketers, or refiners processing more than 50,000 barrels per day. Additionally, entities with average daily production exceeding 1,000 barrels of oil (or 6,000,000 cubic feet of gas) are ineligible. Under the "Small Producers Exemption," 15% of Gross Income (not Net Income) derived from an oil and gas producing property is exempt from taxation
The Tax Reform Act of 1986 introduced the distinction between "Passive" income and "Active" income into the Tax Code. According to this Act, losses from Passive activities cannot be offset against income from Active businesses.
However, the Tax Code explicitly states that a Working Interest in an oil and gas well is not categorized as a "Passive" Activity. Therefore, deductions from such activities can be offset against income derived from active pursuits such as stock trades, business income, salaries, and more. (Refer to Section 469(c)(3) of the Tax Code for further details.)
BNR's acquisition strategy centers on established de-risked assets equipped with infrastructure and operational wells poised to deliver immediate cash flow and potential growth via supplementary drilling activities. Our primary focus is on acquiring financially distressed energy assets, allowing for swift operational enhancements funded by injected capital. This strategic approach creates a favorable buying opportunity, potentially optimizing returns for the projects. Additionally, BNR's network of operations and industry partners empowers us to efficiently manage costs through direct negotiation and oversight of necessary oilfield services.
Investing in BNR's Oil & Gas Direct Participation Fund offers investors a direct involvement in the Fund's cash flow, derived from the oil and gas assets it owns. Furthermore, certain investors may benefit from the tax advantages generated by the Fund's operations, potentially aiding in lowering their individual tax liabilities.
Yes. Non-U.S. residents may invest in BNR's projects, subject to local securities laws.
Should the Fund's revenues surpass its expenditures, investors can anticipate receiving regular distributions of the Fund's cash profits. BNR anticipates initiating cash distributions to partners roughly three months following the completion/ rework of the assets. These distributions may occur monthly thereafter, but at minimum, on a quarterly basis. The specific distribution amount hinges primarily on the Fund's net cash receipts from oil and natural gas operations, influenced by factors including oil and natural gas prices, as well as production levels from the Fund's properties.
Phone: 406.729.3032
Mon | 09:00 am – 05:00 pm | |
Tue | 09:00 am – 05:00 pm | |
Wed | 09:00 am – 05:00 pm | |
Thu | 09:00 am – 05:00 pm | |
Fri | 09:00 am – 05:00 pm | |
Sat | Closed | |
Sun | Closed |
Investing in oil and gas carries notable risks. The information provided on this site serves general purposes solely and does not constitute a solicitation to purchase or an offer to sell securities. The content presented here should not be construed as personalized investment or tax advice. It is recommended to consult with your personal tax advisor regarding the current tax laws and their implications on your individual tax circumstances.
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