We strive to deliver the best professional results for our clients, working efficiently and confidentially to suit your individual needs.
We work hard to maintain the respect and trust earned through our business relationships. We proudly assist in the oil & gas lease projects that generate assets for people to build dreams upon, extend family legacies, infuse newfound hope, or create community connections.
Likewise, if you have an interest in learning more about investing in the oil and gas industry, you should know that it is not for everyone. Energy exploration is vital to our nation’s interests; therefore, the IRS has structured generous tax breaks for those involved in oil and gas exploration. Every day individuals are drawn to this exciting investment arena, urged by the potential of financial windfalls and the tax breaks that come with your investment.
Potentially, 75% of your first year investment could be a deduction. For example, if you are looking to invest $100,000 in the exploration phase, you may be able to claim $75,000 as a tax write-off. On the financial side of things, we work closely with clients’ accountants. Many accountants see the advantages of investing in the oil and gas industry.
Many investors consider this a patriotic investment as they contribute to tapping America’s natural resources to reduce the dependence and import of foreign crude.
For some who become part of a successful well, they can be known to recover their investment within 7-12 months, depending on the results of the well and its longevity.
Be sure to consult your own financial and legal professional for proper advice.
The ever-changing landscape of the oil and gas business, demands that you work with a team committed to providing timely and accurate information, enabling you to make the best decisions.
Let us take a look at an example - day in the life of a landman:
XYZ Oil & Gas Company’s geology department thinks that they should drill in a specific location. XYZ Oil will outsource a firm, like Razor Resources. Our firm will then perform the following services.
We will begin by running title and finding out information on the land of interest.
This search will include finding details about any previous existing wells, look for anything that is held by production, establish a prior history, investigate prior land leases, and identify the status existing wells on the property (dry holes, plugged, or abandoned).
If there are mineral rights that are open and could be leased, the landman can then lease the mineral interest on behalf of XYZ Oil.
Typically, the terms of the lease are for a number of years with a given royalty for their interest. A bonus consideration is given to the mineral owner for entering into the lease, usually by a dollar amount per acre. Once they become a part of a well that is producing oil/gas, they are then entitled to a royalty.
In order to determine mineral ownership of any piece of property, a landman, such as Razor Resources, must extensively investigate recorded public records for current ownership. To be valid, an adequate title chain must be completed from patent to a current owner -- including every conveyance affecting the specific piece of property.
These are just some of the many services provided by Razor Resources.