About Development Drilling
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Lower Risk Development Focus | |
Maple Leaf Oil & Gas Royalty Income programs geologists and engineers focus on investing in development or "in-fill" wells and do not finance the drilling on any high risk wildcat wells. Government Regulated Proven Pools -
Using
current government regulated production data from already producing
wells, along with seismic reading equipment, it has become much easier
to determine the ideal location to drill for subsequent "in-fill" wells. Oil and Gas Companies with a Development Drilling Target
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Well Understood Development Drilling Programs
can Create Value for Investors
Oil and gas companies undertake two types of drilling; exploration or development. Development drilling offers substantially less risk.
Key Advantages of Development Drilling
- Development drilling means drilling into an already existing and producing pool of oil and/or gas.
- 85% average success rate in development drilling vs. only 10% average success rate for exploration drilling.
- Infrastructure (i.e. pipelines) and processing facilities are generally already in place to facilitate tie-in of production and paying investors income as soon as possible.
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Diversification Through Technology | | |
Maple Leaf Oil & Gas Royalty Income programs provide diversification through key geographical areas and multi-zone development drilling. |
WHAT ARE SOME OF THE RISKS OF THESE TYPES OF PROGRAMS?
- Drilling wells can be
viewed as risky, however the partnership has mitigated this risk by
targeting development wells, which typically achieve a success rate in
excess of 85%, rather than exploration wells.
- Well performance, i.e. the actual daily volume of production achieved from a well and its
estimated reserves of oil and natural gas, can vary from pre-drill
projections.
- Commodity price volatility.
One important factor that significantly mitigates risk is the 100% tax deduction (over time) that the investors realize from participation in Maple Leaf Oil & Gas Royalty Income programs. This tax deduction returns back to investors approximately 40% of their investment from their tax savings.
Investment Lifecycle
Maple Leaf Oil & Gas Royalty Income programs can provide investors up to a 100% tax deduction (over time), monthly income, liquidity and the opportunity to convert income into capital gains.
View Investment Lifecycle