Why Invest
Unique Investment Vehicle
As high net worth investors grow restless in today’s volatile and low yield environment, many are more willing than ever to abandon the investment mainstream in search of opportunities that may deliver higher returns. With a strong combination of long term active income and high ROI potential, significant tax benefits, and portfolio diversification, direct participation in oil and gas joint ventures meets a wide variety of aggressive investment objectives.
Strong ROI Potential
Investing in energy can provide decades of monthly income and strong ROI potential. Direct participation in oil and gas can still be a great way for partners to potentially benefit from returns that outpace most market-based investments. Lonesome Dove Energy is committed to participating in industry projects, which employ 3-D Seismic imaging and improved drilling technology, and the exclusivity to developmental, infield drilling in proven conventional fields has changed the dynamics and lowered the risk of investing. Improved success rates and smart, targeted investments in proven, producing fields with established infrastructure set the stage for strong investment performance.
As a hard asset with low correlation to stocks & bonds, energy investments could protect your portfolio from short-term market fluctuations. While no single investment strategy is suitable for everyone, exploration and/or production-based energy investments offer the potential for higher returns than many traditional investments. Direct energy investments (a portfolio with ownership in producing oil and gas) enjoy low correlation with other traditional asset classes and generally positive correlation with inflation. As a diversification strategy, a portfolio with ownership in such an investment may provide a hedge against fluctuating market conditions and inflation movements.
Direct Participation
Investing directly with Lonesome Dove Energy, LLC allows a partner to be a part of a standard oil and gas industry venture and participate directly in all aspects of owning a stake in the revenues potentially generated from an oil and/or gas well. This of course carries a different risk-to-reward profile when compared to market-based investments, and generally allows the investor the potential for much higher returns as well as excellent tax benefits afforded to accredited individuals who directly invest in the oil sector.
Deciding what type of investment may work for you will generally depend on your risk tolerance, available capital to invest, and your goals for making an investment (income, growth, and tax deductions).
There are significant tax advantages available to qualified investors who participate in Joint Venture Partnerships. Under the current law, the entire investment is deductible against their ordinary income. Also, the income from each project is fifteen percent tax free, so a partner only pays taxes on
eighty-five cents on the dollar.
Please consult with a tax professional for information specific to your tax situation before making any investment decisions.
Accredited Investors
Only those individuals who qualify as “accredited investors” may participate in one of our Lonesome Dove Energy Joint Ventures. An accredited investor is defined as an individual who satisfies at least one of the standards listed below.
1. An individual whose net worth (excluding the value of your primary residence) and personal property, over total liabilities, individually or in addition to that of his or her spouse at the present time exceed $1 million
2. An individual who has had income in each of the two most recent years in excess of $200,000, or joint income with his or her spouse in excess of $300,000 in each of the two most recent years, and reasonably expects the same income level in the present year
3. An entity in which all of the equity owners are accredited investors
4. An individual or entity that may otherwise be deemed an accredited investor as that term is defined in Rule 501(a) of Regulation D as promulgated by the Securities and Exchange Commission
Although we do not offer or sell securities, we believe that the SEC recommendations are a strong guideline for any potential partner to follow in considering participation in a Lonesome Dove Energy managed Joint Venture General Partnership.