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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.

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Here'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

Gross Investment$100,000
β†’
Year-1 IDC Tax Savingsβˆ’$27,750
β†’
Net Capital at Risk$72,250

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

Payback Progress vs. HorizonNot recouped within 3 years
Annual After-Tax Cash Flow
Net Cash Depletion Shield
Yr1
Yr2
Yr3
YearAvg. Prod.Gross RevenueYour NRI ShareLOEDepletion ShieldAfter-Tax Cash
Year 1129$3.20M$51,212($13,556)$2,842$26,566
Year 2100$2.49M$39,813($10,539)$2,210$20,652
Year 383$2.05M$32,838($8,692)$1,823$17,034
Total–$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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