Royalty Owners

 Global values our relationships with our royalty partners and want to make it easy and convenient for each one to access the info and resources needed. If you need additional assistance, call us at 604-719-1796. 

Please notify Global as soon as possible when your mailing address changes. For your protection, we will not accept address changes by telephone. Please submit your change in writing by mail. Please include your name, date of request, owner number, last four digits of your social security number, phone number, and signature. 

Attention:

Global Oil & Gas Recovery, LLC,

4601E. Douglas Ave. STE 150

Wichita, KS 67218

United States

Oil and gas investments have never looked better! But, they are not suitable for everyone, as drilling for oil and gas can be a risky proposition. For those who qualify, participation in an independent oil and gas project can provide strong returns on a tax-advantaged basis.

The benefits of a K-1 (Schedule E of Form 1040) tax-advantage on an oil investment you can use against your personal income. A K-1 is a major tax benefit available for oil and gas investors. It enables investors to incorporate their share of the Venture's financial results into their individual tax returns.

Oil and gas projects require substantial labor, services, and non-salvageable materials, resulting in a significant portion of expenditures being classified as Intangible Drilling Cost (IDC). IDC's include everything but the actual drilling equipment. Labor, chemicals, mud, grease, and other miscellaneous items necessary for drilling are considered intangible.

These expenses generally constitute 60-80% of the total cost of drilling a well and are 100% deductible in the year incurred. For example, if it costs $300,000 to drill a well, and if it were determined that 75% of that cost would be considered intangible, the investor would receive a current deduction of $225,000. 

Furthermore, it doesn't matter whether the well actually produces or even strikes oil. 

K-1's are issued to all partners by March 15th each year. Companies will divide income and losses to each partner based on several factors. Essentially the K-1 reports the owner's share of the company from the original agreement and any amendments to said agreement. The main tax benefits of investing in oil include; royalties, which are the compensation received by those who own the land where oil and gas wells are drilled. All royalty income is re-portable on Schedule E of Form 1040.

Working interests are not considered to be securities. Working interests are often sold by a; Production Sharing Agreement or Royalty Agreement. This type of arrangement is similar to a general partnership in that each participant has unlimited liability. But, the SEC requires that investors for many oil and gas partnerships be accredited, which means that they need to meet certain income and net worth requirements.