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Merica Oil Company

Oil & Gas Exploration & Production

Our investment funds are offered as a Limited Partnership to Accredited Investors wishing to invest in positive ROI (Returns on Investment), long-term revenue potential, and drilling and depreciation tax deductions.
We believe that with a strong combination of high ROI potential, long-term passive income, tax benefits, and portfolio diversification through investment in an oil and gas fund makes good business sense.

Our Approach

Merica Oil Company

We seek to create income, positive returns, and generational wealth through investments in energy, thereby resulting in long term investor relationships.

Our core values are Honor, Transparency, Discipline, Courage, and Commitment and being Results Oriented.

Tax Advantages

Intangible Drilling Cost Deduction

Tax Advantages
There are many tax advantages available for investors who are sophisticated and wealthy enough to move beyond common asset classes, including these in oil and gas:
Tangible Drilling Cost deduction: Tangible drilling costs are the actual direct costs of drilling equipment, such as rigs and machinery. When drilling a new well, about 30% of the drilling costs are tangible and are 100% tax-deductible but must be depreciated over 7 years.

Tax Advantages

Federal Tax Incentives

Intangible Drilling Cost deduction: The other 70% of drilling costs are intangible, which are expenses that cannot be recovered but are necessary for the drilling and preparation of wells for production. These costs include survey work, drainage, ground clearing, fuel, wages, repairs, hauling, and supplies; basically, everything except the actual drilling equipment and leases. Intangible drilling costs are 100% tax-deductible in the year incurred as long as a well is operating by March 31 of the following year. Alternatively, Investors can amortize all or a portion of the costs over 5 years. Intangible drilling costs are above-the-line deductions that reduce adjusted gross income and taxable income. Limited Partners can offset passive income with them.

Intangible Drilling Cost Deduction

Tax Benefit Calculation Worksheet