We are an independent oil and gas company based in Colorado Springs that offers excellent drilling joint ventures to qualified investors who appreciate what our programs have to offer. Our Objective Statement gives you an idea why you might like them:
My name is Justin D. Brown, CEO of Fusion Resources. I, as well as my entire Team are proud of the organization we have built and the demonstrated financial success we have achieved for our partners. We invite you to explore our Website; to learn more about us, and how you might benefit from partnering with us in our joint ventures.
We know the main reason you are here: to find out if we are the right fit with your financial goals and strategies. Please consider our Website your information resource for doing just that. And the best way to start is by getting answers to three basic questions found below.
There is a lot to consider, and only you can decide if oil and gas joint ventures meet your needs. So after reading our answers, we invite you to contact us to discuss further. You can use the “Contact Us” tab on our Website. Or you can call us at 719 368-8100.
Our joint venture partners know the value Fusion Resources adds to long-term business relationships because we work hard for them and earn nice returns. If oil and gas joint ventures fit your financial needs, we can do the same for you.
Best wishes going forward!
Excellent question! Here is a candid explanation of what oil and gas joint ventures are, what types of investors may benefit from them, and what to look for in the offering company. It also explains why, if you are the type of investor who wants to discuss them further, you should contact Fusion Resources.
It is important for you the investor, and we can provide a number of excellent reasons. All oil and gas joint venture companies will tell you “how great” they are. But they are missing the point! You want to know why you should invest your hard-earned money with them. And that is what we will focus on here! Let’s start with some numbers:
Most private investors compare reading joint venture documents to drinking from a fire hose: the volume of information and terminology are overwhelming. There might be a “Project Overview” as well as the “Private Placement Memorandum” or “Confidential Information Memorandum”. How do you figure it all out?
Fusion Resources, LLC of Colorado Springs, is an independent oil & gas company that drills and produces oil and gas domestically in proven undeveloped areas. These are not iffy, “pay and pray” programs — most are already producing income. A typical partner is an accredited investor who can utilize the 100% write-off for participating. In most instances, the government pays for as much as half of the investment AND the first 15% of revenue is tax-free.
The intangible expenditures of drilling are usually about (65 to 80%) of the cost of a well. These expenditures are 100% deductible during the first year.
The Tax Code specifically states that a Working Interest in an oil and gas well is not a “Passive” Activity, therefore, deductions can be offset against income
Oil and Natural gas from domestic reserves helps to make our country more energy self-sufficient by reducing our dependency on foreign imports. In light of this, Congress has provided tax incentives to stimulate domestic natural gas and oil production financed by private sources. Drilling projects offer many tax advantages and these benefits greatly enhance the economics. These incentives are not “Loop Holes” they were placed in the Tax Code by Congress to make participation in oil and gas ventures one of the best tax advantaged investments.
This page is displayed as general tax code information related to oil and gas investments. The following information and Internet URL is provided for your convenience and should not be construed as tax advice from Fusion Resources LLC.
The intangible expenditures of drilling (labor, chemicals, mud, grease, etc.) are usually about (65 to 80%) of the cost of a well. These expenditures are considered “Intangible Drilling Cost (IDC)”, which is 100% deductible during the first year. For example, a $100,000 investment would yield up to $75,000 in tax deductions during the first year of the venture. These deductions are available in the year the money was invested, even if the well does not start drilling until March 31 of the year following the contribution of capital.
The total amount of the investment allocated to the equipment “Tangible Drilling Costs (TDC)” is 100% tax deductible. In the example above, the remaining tangible costs ($25,000) may be deducted as depreciation over a seven-year period.
The Tax Reform Act of 1986 introduced into the Tax Code, concepts of “Passive” income and “Active” income. The Act prohibits the offsetting of losses from Passive activities against income from Active businesses. The Tax Code specifically states that a Working Interest in an oil and gas well is not a “Passive” Activity, therefore, deductions can be offset against income from active stock trades, business income, salaries, etc.
The 1990 Tax Act provided some special tax advantages for small companies and individuals. This tax incentive, known as the “Percentage Depletion Allowance”, is specifically intended to encourage participation in oil and gas drilling. This tax benefit is not available to large oil companies, retail petroleum marketers, or refiners that process more than 50,000 barrels per day. It is also not available for entities owning more than 1,000 barrels of oil (or 6,000,000 cubic feet of gas) average daily production. The “Small Producers Exemption” allows 15% of the Gross Income (not Net Income) from an oil and gas producing property to be tax-free.
Lease costs (purchase of leases, minerals, etc.), sales expenses, legal expenses, administrative accounting, and Lease Operating Costs (LOC) are also 100% tax deductible through cost depletion
To create wealth for our partners who are the life blood of our company. To treat our employees with respect and provide an environment for their growth as team members and human beings. To treat our contractors, vendors, service providers and advisors as valued members of our Fusion Resources family. To contribute to our community financially and, through our efforts and positive thoughts, to achieve a common goal. To always remember that honesty is not just the best policy; It’s the only policy.
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