Invest in Oil Wells
After 3 years of research, we have determined that our lease is situated above oil rich geologic
zones. We believe that the site selected for the new well is a potential hydrothermal vent, also known
as a "chimney".
One of the reasons Bombshell Oil Co. is better than many other oil exploration companies is that
we offer larger interests at more reasonable cost. Many other companies offer a 2% to 5% interest,
while our normal interest is larger. *Please call or email for prices.
Currently, we are planning to drill a new well with operations to begin by Spring 2016.
This project consists of drilling 1 new well in a field that has shown great potential. The new well site is marked #3 on the map. This well will be drilled to a depth of 1500 feet.
Drilling to 1500 feet will include the oil zones of Granville, Sunnybrook, Stone's River, Wells Creek
and Knox. Our #2 well, which was just done, is producing oil from the Carboniferous, upper &
lower Sunnybrook and Stones River formations.
The geological makeup of the new #3 site is almost identical to that of our #2 wellsite.
The operators that drill the wells of Kentucky look for a "chimney", or fracture that channels oil from
down deep in the Earth up to shallower zones that are oil productive. If such a chimney is encountered,
the resulting well can sometimes produce thousands of barrels of oil per day. Recent studies by the
KGS have suggested that the oils of different formations have all migrated from the same source.
It appears that Kentucky has been subjected to several periods of folding that have caused
considerable amounts of fracturing.
The fracture systems that exist in the area would provide conduits, ie. chimneys for the
accumulation of hydrocarbons in any of the formations.
Once this conduit is discovered, there will be a giant oil field.
The tax benefits associated with
direct participation in domestic oil
and gas exploration remain one of
the last great beneficial tax
deductions afforded by the federal
government. The ability to write-off
between 70 and 80% of ones initial investment and the remaining amount over the next 7 years makes direct participation a much greater value than indirect participation through the stock market or mutual funds.* In conclusion, as the innumerable cost of oil and gas continue to rise over the next decade, it becomes vital to invest in such a manner as to lessen one's financial exposure to what is likely to be a very significant and negative change due to the volatile energy future.
*On a personal note, would you rather invest in a new limousine for a sheik, or into Bombshell Oil, an American oil company. If you buy a bar of gold today, next week, next month or next year you still have 1 bar of gold. Whereas, if you invest in Bombshell Oil Co., we will do our best to drill you a well that could keep on giving for decades.
*Benefits may vary. Check with your financial advisor.
Documentation and maps were obtained from the Kentucky Geological Survey at the University of Kentucky.
Major Tax Benefits