Frequently Asked Questions
Before You Invest
Why Wheeler Resource Recovery?
We are an 86-year-old company with a proven track record of expertise and success. Our water flood field development projects have put over 29,000,000 barrels of oil in the tank just in the last several decades.
What Is Secondary Oil Recovery?
The bulk of the oil in a field is extracted in the second phase of development at a lower cost and at a much lower risk than primary recovery. We recover up to 50% of the original oil, while sustaining and increasing production by injecting water, which mechanically re-pressures the oil formations.
How Do You Evaluate An Oil & Gas Project?
When evaluating an oil and gas project, you’ll want to look at the company’s track record, figure out whether the company has an actual stake in the project, and calculate your return on investment (ROI). Luckily, Wheeler has a verifiable track record of success with secondary oil recovery and we invest our own money into every project. We only make money when our investors do too. Through secondary oil recovery, our projects are also cost efficient, come with unique tax benefits, and have a much lower breakeven price than primary oil recovery.
Who Is Eligible To Invest?
We have established a field development project where a non-industry investor can participate in the same capacity as an industry insider. As such, we are looking for accredited investors, regardless of industry knowledge, who want to be a part of a low-risk, high-reward investment. We seek out investors who want to partner with us to successfully execute a field development project, while not exposing and committing the investor to the cost of the entire project.
How Do I Make Money Investing?
While many other private energy companies make their profits by raising money, we make our money by successfully completing projects and producing oil. We have a vested interest with our investors. We are all paid on production, meaning we only make money when you make money.
What Are My Tax Benefits For Investing?
Oil investing tax breaks are significant. The Federal Tax Code Section 263 and Section 179 allows our investors to deduct 90% of total invested funds, the year deployed, against all other taxable income, active, passive or portfolio. It is important to note that these are not deductions of a loss subject to the $3,000.00 annual limit, but are treated by the Tax Code as the deduction of an expense and can be taken in full the year incurred regardless of any other loss/gain deduction for the year.
Additionally, the Tax Code allows all oil revenue from your oil well to be 15% tax free under the Federal Depletion Allowance