In a rapidly evolving energy landscape, oil and gas remain vital resources powering the global economy. The exploration for and production of oil and gas through development (the upstream sector), is the primary area of focus for Alphascend Capital.

For savvy accredited investors seeking to diversify their portfolios, the energy sector presents many opportunities. Alphascend Capital is committed to providing accredited investors opportunities in the upstream sector. Specifically, Alphascend Capital only evaluates upstream development projects that are in the development stage, far removed from exploratory (high risk) drilling projects.

This page provides insights into the world of oil and gas investments. Our objective is to demystify this important industry and make investments in oil and gas as straightforward as possible. The unique aspects and intricacies can be explained and navigated.

Whether you are a seasoned oil and gas investor or new to the industry, the opportunities Alphascend Capital provide can provide attractive avenues for upstream investing.

Become an informed Oil & Gas Investor

Considering oil and gas investment opportunities can be rewarding for those looking to learn a tried and tested industry.

Learning the details and unique aspects of this sector is essential, and Alphascend Capital is the ideal partner with the experience to inform, guide and teach along the way.

There are many risks to evaluate in an investment in the oil and gas industry. There is the geological risk, operational risk, commodity price risk as well as geopolitical factors, and green energy trends that could impact on the opportunity.

Learning to spot favorable prospects within the industry requires mastering the ability to analyze stage of development and identify what the primary risks are in the opportunity.

As you gain more insight into the markets, you may find that this offers the potential to generate significant returns.

Nonetheless, the complexity and inherent risks mean you should have a partner that has been through the highs and lows of the cyclical upstream sector.

Maximizing Tax Advantages with Oil & Gas Investing

Oil and gas investments offer unique tax benefits, when the investment includes the drilling and completion of a new well. The capital cost of a new well include its drilling and completion (or stimulated fracture). These combined costs are referred to as D&C costs.

These D&C costs are comprised of tangible and intangible costs, so there are tangible drilling costs (“TDCs”), intangible drilling costs (“IDCs”), tangible completion costs (“TCCs”), and intangible completion costs (“ICCs”).

Most of the D&C costs of a new well involve expenses are services that do not have any salvage value.

Examples of IDCs and ICCs are the rental of the drilling rig and drilling tools, the contracted labor of all the rig personnel, the rental of the compressors, water tanks, and related completion equipment. Approximately, 65% to 85% of the total D&C costs of a well consist of IDCs and ICCs.

In order to attract capital investment into the oil and gas industry the United States tax code has allowed for the deduction of IDCs and ICCs from ordinary income since 1913. This tax treatment is specified in the IRS tax code 26 CFR 1.263(c)-1 and § 1.612-4.

These deductions significantly reduce an investor’s taxable income in the year the IDCs and ICCs in the year they were incurred, and thus enhance the ROI and reduce the capital risk of the oil and gas investment.

When evaluating an oil and gas opportunity, seek the counsel of professional tax experts.

Investment Strategy

Investing in the oil and gas sector can be lucrative due to the industry’s significant role in global energy markets. It does, however, involve risks which are evaluated and mitigated where possible.

This comprehensive undertaking encapsulates proactive research, ongoing sector and commodity analysis, and a judicious assessment of an opportunity’s prospects.