Model Your Oil Well Returns: The After-Tax ROI Estimator
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Investor Tool
Well ROI Estimator
Model potential returns based on production rates, prices, and your working interest.
Try the CalculatorβHere's What You Need to Know
- /IDCs cut your net capital at risk from day one. Plug in your tax rate to see the exact dollar impact.
- /Production follows a hyperbolic decline curve (b=1.2). That's the industry standard for tight oil wells.
- /The 15% depletion allowance puts a permanent annual tax shield on your NRI revenue.
How to Use the ROI Estimator
Map out your personal after-tax returns across a well's production life. Tweak 9 parameters (investment size, working interest, production rates, oil price, and tax assumptions) and watch the projections update year by year. Stress-test different oil prices, decline rates, and operating costs before you commit capital.
We've built in intangible drilling cost deductions and the 15% depletion allowance so you're seeing true after-tax economics. For a broader look at oil and gas tax advantages, see our complete tax benefits guide. Ready to see real project numbers? Browse our current drilling projects.
Your Parameters
Well Performance
Tax Assumptions
Net Investment
$72,250
After IDC tax savings
Cumulative Cash Flow
$64,252
3-year cumulative, after-tax
Payback Period
>3yr
Months to recoup net investment
Total ROI
-11.1%
3-year on net investment
| Year | Avg. Prod. | Gross Revenue | Your NRI Share | LOE | Depletion Shield | After-Tax Cash |
|---|---|---|---|---|---|---|
| Year 1 | 129 | $3.20M | $51,212 | ($13,556) | $2,842 | $26,566 |
| Year 2 | 100 | $2.49M | $39,813 | ($10,539) | $2,210 | $20,652 |
| Year 3 | 83 | $2.05M | $32,838 | ($8,692) | $1,823 | $17,034 |
| Total | β | $7.74M | $123,863 | ($32,787) | $6,874 | $64,252 |
Illustrative, not a projection: This tool uses generalized industry assumptions to show how the asset class and federal tax code work in general terms. Outputs are not projections for any specific BassEXP offering. Individual results vary significantly with well performance, commodity prices, and program structure, and are not guaranteed. Past performance is not indicative of future results. Consult a qualified CPA or financial advisor for advice specific to your situation.
Model notes: Uses a simplified hyperbolic decline model (b=1.2) and does not account for gas production, NGL revenue, TDC depreciation, state taxes, workover costs, or actual well performance.
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