Wing Hollow Project — Program Record
Status: Wing Hollow is fully subscribed and is not open for investment. This page is a record of the program, not an offer.
Wing Hollow is a 40-well shallow vertical drilling program in western New York, developed across six shallow pay zones. What follows is what has been published about the program and how the economics work — without projections.
How the Economics Work
Direct participation in a drilling program has two separate money flows. They are not the same thing and should never be added together as a “return”:
- 1. The first-year deduction. Intangible drilling costs are deductible in the year drilling begins under IRC §263(c). A deduction reduces tax on income you have already earned — it lowers your net cost basis. It does not pay you anything. Whether those deductions can offset ordinary income such as salary depends on how the interest is held and on your own tax position (IRC §469(c)(3); IRS Pub. 925). Your CPA should confirm this against the actual offering documents, not against a website.
- 2. Production revenue. Once wells are completed and connected to a buyer, revenue is distributed on the net revenue interest — the share left after lease royalty and any overriding royalties — while operating costs are charged against the working interest. Distributions from a producing well typically begin three to six months after drilling, depending on the completion and hookup schedule. They are not fixed and are not guaranteed.
- 3. What you owe. A working interest owner can be assessed for cost overruns (cash calls) and is liable for a share of plugging and abandonment at the end of a well’s life. Exposure is not capped at the amount subscribed.
Wing Hollow Technical Overview
- Project Scope: 40-well shallow vertical development program
- Target Formations: six shallow pay zones
- Development type: conventional shallow vertical wells in a developed western New York field
- Unit size, working interest and net revenue interest per unit, total program capitalization, and the legal form in which the interest is held: set out in the offering documents for the program. Those terms are not published on this page — request the documents for the authoritative figures.
Regional Operating History
Between our operating team and geological consultants, nearly 2,000 wells have been drilled throughout this region. That footprint is the basis for the decline-curve expectations, completion design and subsurface modeling used to lay out programs here. It is operating history, not a forecast for any individual well.
The Follow-On Program
The 30-well Slocum Hollow program, north of Wing Hollow, targets the same shallow sandstone section with wider well spacing. It is fully subscribed and closed to new investment. The Slocum Hollow page sets out what a unit is, how a working interest differs from a net revenue interest, and what a working interest owner is liable for.
Nothing Is Open Right Now — See the Next Program First
Every program we have offered to date is fully funded. When the next one opens, the first-look list gets the geology, the structure and the offering documents before it circulates.
Join the First-Look List »
Working through the first-year deduction with your CPA:
Run the Tax Math »
Investment Disclosure: This page describes a closed program and is provided for information only. It is not an offer to sell or a solicitation of an offer to buy any security; offers are made only by confidential private placement memorandum delivered to verified accredited investors. Tax benefits depend on individual circumstances, on how an interest is held, and on IRS regulations that can change — consult your own tax advisor. Oil and gas investments involve substantial risk, including loss of principal and liability for costs beyond the amount invested. Past performance does not guarantee future results.
