Wells · Working Interest · Royalties · Mineral Rights · Tax Benefits

Invest in American energy — with your eyes open.

Most sites about oil & gas investing are written by someone selling a deal. This one is written from the operator's chair. I'm the CFO of the Pheasant oil & gas entities — I build the well-economics models, valuations, and tax systems behind real drilling capital, and I invest my own money in this asset class. This site teaches the RESERVES framework: the eight tests I run before a dollar goes downhole.

Learn the RESERVES framework → Royalty value calculator

Free · Educational only · Not an offer — nothing here is for sale

Written by a working oil & gas CFO Every tax claim cited to the code Risks stated before returns
Why investors look at direct deals

The tax treatment is unlike any other asset class

Congress wrote drilling incentives directly into the tax code. Used correctly — and they are frequently pitched incorrectly — they can change the after-tax math of a deal.

What the code allows
Intangible drilling costs (IDC)Deductible year one
Percentage depletion on production15% of gross income
Working interest exception (§469)Offsets active income
Rules, limits, and AMT interactions explained in the tax guide — including when they don't apply.
Typical share of a drilling investment 65–80% of the investment is often IDC — deductible against income in the first year for general-partner working interests
Field intelligence

Know the rock before you know the deal

Every pitch you'll ever hear sits in a basin whose geology, well economics, and tax regime are knowable in advance. We mapped the seven majors — Permian, Eagle Ford, Williston, Appalachian, Haynesville, Anadarko, and DJ — with the producing intervals, breakevens, and the USGS studies behind them.

Before you invest a dollar

Direct oil & gas is a risk asset. Treat it like one.

Dry holes happen. Operators fail. Commodity prices halve. Most private deals are illiquid for years and some are structured to favor the sponsor. The tax benefits are real, but they never turn a bad well into a good investment. Every guide on this site states the risks before the returns — start with the investing guide's red-flags checklist.