Sold out — but here’s the good news: Kingdom Scout™, the engine that screens 2.3 million American wells, has already flagged what’s next. We think it’s even better. The first-access list sees it first.
Get First Access to the Next Project » See how we pick projects →Under current federal law, the intangible drilling costs in a working-interest oil and gas program are deductible in the year they are incurred, and the tangible portion is recovered through depreciation. Below is how we evaluate a project, what the Slocum Hollow program looked like, and what can go wrong. Deduction figures on this page are illustrations only — your result depends on your own tax situation and the specific well AFE. Consult your tax advisor.
A deduction reduces taxable income; it is not a return of capital and not a projection of investment performance. §461(l) excess business loss and §465 at-risk limits are not modelled here.
One program open now
Everything below is how we screen a project, and what the two funded programs looked like. This is the one that is actually open: a four-lateral horizontal oil program on 988 acres, with a confirmed spud deadline of December 2026.
Both target sections already have vertical wells that produced oil from the same zone the horizontals will target — verified against state production records rather than the seller’s word. The operator, county and well names stay under NDA until you are in the data room. Drilling is speculative and every project carries the risk of total loss.
See the Project Homestead briefSean Pruitt explains how the Slocum Hollow project was structured, what we look for in a development-drilling project, and how the current tax treatment of drilling costs works.
After watching, get your free investment package below
Two powerful benefits working together: massive tax deductions + monthly income
Intangible drilling costs (IDC) are deductible in the year they are incurred. The tangible portion is depreciable, and current bonus-depreciation rules can accelerate that into the same year. How much of your own subscription is deductible, and in which year, depends on the specific well AFE and on your tax situation.
Working-interest drilling deductions are not automatically limited to passive income, but they are still subject to the §465 at-risk rules and the §461(l) excess business loss limitation. Bring your CPA to the briefing call — we do not pay CPAs or advisors referral fees, so whatever they tell you is their own read.
A working interest pays out monthly from oil sales, net of royalties and operating costs, once a well is completed and on line. It is revenue, not a coupon: it moves with production and with the oil price, it can be interrupted, and it can stop.
We do not publish income projections on the open web. Per-well economics, decline assumptions and the full return model are delivered in the private materials, to investors whose accredited status has been verified under SEC Rule 506(c). Wells can underproduce, be shut in, or fail to produce commercial quantities at all.
The deduction and the income are not the same event. The deduction is driven by drilling costs and lands in the year the costs are incurred, whether or not the well produces. The income depends entirely on whether the well produces and at what price. Treating a deduction as if it were a return is the single most common mistake investors make in this asset class.
Fully funded and closed — shown here as an example of what we look for
Exploration risk and development risk are different animals. Slocum Hollow was development drilling: offsetting wells in the same field are already producing, so the presence of oil in the formation was established before the first well was permitted. That removes one category of risk. It does not remove the others — individual wells can still be mechanically unsuccessful, underproduce, or be uneconomic at a low oil price.
The project offsets wells that have already produced from the same formations. Offset production establishes that the reservoir is there; it does not guarantee that any particular new well will match it.
Capital spread across a 30-well program is less exposed to any single well's result than capital in one well. Program-level diversification reduces single-well risk; it does not remove field, price, operator or regulatory risk, and it does not protect against loss of principal.
The same operator drilled the adjacent Wing Hollow field, so this was not their first program in this county or their first time in these formations. Operator history is disclosed in the private materials; ask for it and check it yourself.
What was drilled and what it produced. Past project results are not a prediction of future results.
The Wing Hollow Field produced over 30,000 barrels of oil across 40 wells in its first 12 months. That is a production figure, and production is the thing we can point to.
We deliberately do not convert it into a percentage of capital returned. Blending oil revenue with tax savings into a single "capital recovered" number mixes two different kinds of money and flatters the result; investor-level returns depend on the price received, operating costs, each investor's own tax position, and timing. Well-level production and revenue detail is in the private materials.
Same operator. Same area. Same formations. Slocum Hollow sits next to the Wing Hollow Field and uses the same team and the same target rock. Geological similarity is a reason to look closely; it is not a reason to expect the same outcome. Adjacent wells in the same field routinely differ in results.
30,000+ industry connections give me access to hundreds of deals—I only pick the best
I made my first oil investment 30 years ago, and I've learned something important: the best investments aren't the ones promising to hit a home run. They're the ones where someone already hit a home run right next door and left money on the table.
Over the years, I've built a network of over 30,000 connections in the oil and gas industry—operators, geologists, investors, service companies—all sharing what they're working on.
Because of these relationships, I get sent hundreds of oil and gas deals every month. New plays in Oklahoma, workovers in Texas, offshore opportunities in the Gulf—they all cross my desk.
I look at a lot of deals and say "no" to almost all of them. I'm looking for something specific—what I call "pattern drilling territory."
I only invest where wells are already producing, companies are making money, and the formations are proven. Think of it like opening a restaurant on a street where every restaurant is packed—not where they've all failed.
You get access to opportunities most individual investors never see. By the time a deal is broadly marketed, the better ones are usually spoken for. The network lets me see deals early, work them properly, and bring forward only the ones that clear my criteria.
A deduction illustration — not a return projection, and not a promise of income.
Stated assumptions, federal only, so you can hand this to your own tax advisor:
Why we publish the tax math but not a return percentage: the deduction above is arithmetic you can check — a stated rate applied to a stated amount. Investment returns are not arithmetic; they depend on production, price, costs and time. This offering is open only to accredited investors, so the well-by-well return model stays in the private materials that verified investors receive. If a sponsor is advertising ROI percentages on the open internet, ask them why.
While politicians debate, smart investors are taking action. American oil production isn't just an investment—it's a statement about energy independence.
Every barrel produced in New York, supporting American jobs and reducing foreign dependence
Distributions from oil sales once wells are on line, net of royalty and operating costs. Amount and duration depend on production and price.
Oil and gas working interests can lose money, including all of it. We publish the risk list rather than bury it. See Investment Risks →
Intangible drilling costs, tangible costs, and what actually lands in year one
Assumptions behind those three numbers: the full subscription is treated as deductible in year one, and a 37% top federal marginal rate is applied. State income tax is not included. §461(l) excess business loss and §465 at-risk limits are not modelled. Your deductible amount depends on the specific well AFE and your own return — confirm it with your tax advisor. Return figures are shared privately with investors whose accredited status is verified.
Enter your bracket and subscription amount and print the assumptions sheet for your tax advisor
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Choose your unit size. Drilling costs incurred that year are deductible that year.
The operator drills the program in a field where offsetting wells are already producing.
Wells that complete successfully are put on line. Some wells in any program underperform.
Your share of oil sales is distributed monthly, net of royalty and operating costs, for as long as the well produces economically.
Offsetting production in the same formations, so the question is how much rather than whether.
An operator that has drilled this county and these formations before. Their record is in the private materials — ask for it.
Think of it as a six-layer cake—competitors take one slice and leave. We complete all six layers with modern 16-stage frac technology. It's like having six wells in one.
While competitors crowd their wells at 4 acres, we give each well room to breathe
When wells are too close together, hydraulic fracturing treatments overlap and interfere with each other. It's like trying to drink from the same straw—everyone gets less. Our 5.5-acre spacing ensures each well has its own pristine reservoir to drain, maximizing oil recovery and your long-term income stream.
The intent: wider spacing is designed to give each well its own undrained rock, which is what drives ultimate recovery per well. Spacing is an engineering judgement, not a guarantee of results.
The well just 1,500 feet from our property (Kodiak K-1) produced 3,556 barrels from just 12 feet of one zone. The well log shows 81 feet of net pay across 6 zones — they only completed 12 feet and walked away, leaving 69 feet of proven oil pay untouched.
Drilled in the 1980s completing only 3 zones (we're completing all 6):
Key Point: Potter Field used 1980s technology with only 6 total frac stages. We're using modern completion technology with 16 frac stages across all 6 zones. Those are third-party offset wells, drilled decades ago under different costs and oil prices. We publish their barrels because barrels are a matter of record; we do not convert them into a return percentage for a different well, in a different decade, at a different cost.
Our 40-well Wing Hollow Field project, located just west of Slocum Hollow, launched with a handful of initial wells and expanded rapidly due to strong production results and investor demand.
Same operator. Same geology. Same formations. Wing Hollow is why we looked at Slocum Hollow at all. It is a prior project, not a forecast: a neighbouring field having produced does not entitle any investor in a later program to the same outcome, and past project results are not indicative of future results.
The only real deadline is the calendar, not scarcity. For drilling costs to be deductible in a given tax year, drilling generally has to be under way before December 31 of that year. Permitting, funding and rig scheduling take time, which is why the planning conversation usually happens in Q3 rather than in late December. Confirm the timing that applies to your own return with your tax advisor.
Two different mechanisms are at work. Intangible drilling costs — labour, fuel, site prep, the things that have no salvage value — are deductible in the year incurred. Tangible costs such as casing and surface equipment are depreciable, and current bonus-depreciation rules can accelerate that into the same year. The split between the two comes from the specific well AFE, not from a marketing number. Bring your CPA to the briefing call. We do not pay CPAs or advisors referral fees or any other compensation, so their answer is genuinely theirs.
Only after a well is drilled, completed successfully and put on production, and after first sales clear. Timing varies with rig availability, weather, permitting and completion results. Some wells in any drilling program do not reach commercial production at all.
Revenue falls with the oil price, and at a low enough price a well can become uneconomic to operate and be shut in. The deduction is driven by drilling costs and is not affected by the oil price — but a deduction reduces tax, it does not return capital. A price decline can still result in a loss on the investment. This is one of the principal risks; see Investment Risks.
No. Drilling, operations and sales are handled by the operator and you hold a passive interest. That also means you are relying on the operator's execution, which is exactly why the operator's record and the AFE are worth your review before you subscribe.
The package includes the project detail, the tax treatment with the code sections behind it, and the risk factors. Bring your CPA to the briefing call — we do not pay CPAs or advisors referral fees or any other compensation, so their read on it is their own.
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This page is for informational purposes and is not an offer to sell or a solicitation of an offer to buy securities. Any offering is made only to accredited investors, only through the confidential Private Placement Memorandum and subscription documents, in accordance with SEC Rule 506(c) of Regulation D, and only after the purchaser's accredited status has been verified. Oil and gas working interests are speculative and illiquid, and an investor can lose some or all of the amount invested. Wells may fail to produce commercial quantities of oil or gas. Past project results and offset-well production are not indicative of future results. All tax figures on this page are illustrations using the stated assumptions; they are not tax advice, they do not model the §461(l) excess business loss or §465 at-risk limitations, and your deductible amount depends on the specific well AFE and your own tax situation. Consult your own tax advisor. Not a solicitation where prohibited.
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