image136

ABOUT ARNCO

CURRENT AND PAST PROJECTS

CURRENT AND PAST PROJECTS

image137

CURRENT AND PAST PROJECTS

CURRENT AND PAST PROJECTS

CURRENT AND PAST PROJECTS

image138

PHOTOS

CURRENT AND PAST PROJECTS

TAX BENEFITS

image139

TAX BENEFITS

CLICK TO CHECK CRUDE OIL PRICES

TAX BENEFITS

image140

RISK FACTOR

CLICK TO CHECK CRUDE OIL PRICES

CLICK TO CHECK CRUDE OIL PRICES

image141

CLICK TO CHECK CRUDE OIL PRICES

CLICK TO CHECK CRUDE OIL PRICES

CLICK TO CHECK CRUDE OIL PRICES

About Arnco

Arnco Oil & Gas


Arnco Oil & Gas is a small independent oil and gas company in Cookeville, Tennessee.  We specialize in drilling, producing, and operating oil and gas well in Tennessee and surrounding areas.  Arnco has been doing business in Tennessee for the past 51 years and takes a "hands-on" approach to the day to day operations of all aspects of the company.  This helps Arnco keep partner cost low which translate into more profit for our partners.  Arnco is striving to become a leader in the oil and gas industry.


If you have questions or are interested in becoming one of our investment partners,  call us at 931-526-7655 or u can email us at barnold@arncooil.com 


image142

CURRENT PROJECTS

image143

CURRENT PROJECTS

Arnco has aquired several leases in Overton County, Tennessee.  One of these leases is a 330 acre lease with several drilled wells.  Arnco is currently working with partners to examine and drill more wells on this lease due to one of the previous drilled wells coming in at a flow rate of 65 bbls an hour.  Any new wells will be drilled to an approximate depth of 1850 feet.

CURRENT PROJECTS

Another Arnco lease in Overton County, Tennessee is a 200 acre lease with several drilled wells.  Arnco is working with partners to examine and drill additional wells at this lease also.  New wells will also be drilled to an approximate depth of 1850 feet.

image144

CURRENT PROJECT

Arnco has another 200 acre lease in Overton County, Tennessee with several drilled wells.  It is also being examined for future drilling of additional wells. One well on this lease had initial production of 100 bbls a day.

image145

CURRENT PROJECT

Arnco has a 150 acre lease in Overton County, Tennessee that is being examined for future drilling.

PAST PROJECTS

PAST OIL PROJECT

PAST OIL PROJECTS

PAST OIL PROJECT

image146

In 1979, Arnco drilled a well on the Doc Billings Lease that comprised of 1400 acres in Overton County, Tennessee,  This well came in with an initial flow rate of 60 bbls an hour.  It produced for over 10 years and made more than $10,500,000.00 in oil revenues.

PAST OIL PROJECT

PAST OIL PROJECTS

PAST OIL PROJECT

image147

In 2000, Arnco drilled a well on the Union Bank Lease in Overton County, Tennessee.  The first well drilled had an initial production of 60 bbls per hour.  The second well drilled had a initial flow rate of 45 bbls per hour. The third well has an initial flow rate of 52 bbls per hour.

PAST OIL PROJECTS

PAST OIL PROJECTS

PAST NATURAL GAS PROJECTS

image148

In 2013, Arnco drilled a well on the Bacco Lease in Overton County, Tennessee.  It came in with an initial flow rate of 60 bbls a day. Arnco drilled an additional well in 2015 and it initially produced 65 bbl a day.

PAST NATURAL GAS PROJECTS

PAST NATURAL GAS PROJECTS

PAST NATURAL GAS PROJECTS

image149

In 1995, Arnco drilled for gas in Fentress County, Tennessee.  Arnco drilled 21 wells in this area. These wells are approximately 500 feet deep.  Arnco laid a 10 mile 4'' gas line to connect with an existing transportation line.    

PAST NATURAL GAS PROJECTS

PAST NATURAL GAS PROJECTS

PAST NATURAL GAS PROJECTS

image150

In 2005, Arnco drilled 8 gas wells in Sunbright, Tennessee.  After drilling these wells, Arnco and there partners laid an 8'' 15 mile gas line to Spectra Natural Gas Company.  In 2008, CNX Gas purchased Arnco's gas line.

Photo Gallery

BLOWING OIL WELL

BLOWING OIL WELL

BLOWING OIL WELL

BLOWING WELL AFTER DRILLING

.

BLOWING OIL WELL

BLOWING OIL WELL

BLOWING OIL WELL

image151

BLOWING OIL WELL

BLOWING OIL WELL

GAS WELL METER STATION

image152

GAS WELL METER STATION

MOVING ON DRILLING LOCATION

GAS WELL METER STATION

image153

FRACING WELL

MOVING ON DRILLING LOCATION

MOVING ON DRILLING LOCATION

image154

MOVING ON DRILLING LOCATION

MOVING ON DRILLING LOCATION

MOVING ON DRILLING LOCATION

image155

FLAIRING GAS

DELIVERING 8'' GAS LINE

DELIVERING 8'' GAS LINE

image156

DELIVERING 8'' GAS LINE

DELIVERING 8'' GAS LINE

DELIVERING 8'' GAS LINE

image157

RE-ENTERING OIL WELL

DELIVERING 8'' GAS LINE

RE-ENTERING OIL WELL

image158

GAUGING OIL TANKS

DELIVERING 7'' CASING

RE-ENTERING OIL WELL

image159

DELIVERING 7'' CASING

DELIVERING 7'' CASING

DELIVERING 7'' CASING

image160

SERVICING WELL

DELIVERING 7'' CASING

DELIVERING 7'' CASING

image161

TAX BENEFITS

  

For exploratory wells when monies are at risk and not passive for IRS purposes, depending on the financial situation of the investor, the IDC ( Intangible Drilling Cost ) may be expensed. The TDC ( Tangible Drilling Cost ) may be capitalized.

As a rule of thumb, about 75%-95% (give or take 10%) of the total cost for drilling, completing, and equipping the well falls under the IDC and may be deductible the year expensed. The 25% (give or take 10%) of the total cost of the well falls under TDC and may be depreciated over seven years.

It is advised that each individual investor has their own advisor concerning these matters as it relates to their personal situation. For tax filing purposes, the oil and gas company offering the prospect will provide the investor with a statement showing how much money invested went for IDC and how much went for TDC.

By electing at risk and not passive participation, intangible drilling and development cost may be deducted as an expense for federal income tax purposes. The prepayment of intangible drilling cost is generally allowed if drilling occurs within 90 days after the close of the taxable year in which payments are made.


INTANGIBLE DRILLING COST

IDC is defined as any expenditure that in itself does not have a salvage value and is “incident to and necessary for the drilling of wells for the production of oil and gas” U.S. Treas. Reg. Section 1.612-4(a).

¨ Agreements and negotiations in obtaining an operator for the well

¨ Agreements and negotiations with drilling contractors for the bids and drilling 

¨ Survey and seismic work for locating a well site

¨ Construction or a road to a drill site

¨ Dirt work on location such as cellar, pits and drilling of the well

¨ Water, fuel, and other items necessary for drilling

¨ Logging , Acidizing

¨ Rental equipment for oil storage during testing

¨ Cost of removing rig from location, trucking, dozers and labor

¨ Dirt work for clean up

¨ Cementing and installing casing


TANGIBLE DRILLING COST

TDC is defined as lease and well equipment that is installed or constructed in connection with drilling, completing, and production.

¨ Surface casing even though unsalvageable

¨ Production casing even though most of it is unsalvageable

¨ Transportation of casing and tubing from manufacturer to supply point

¨ Wellhead (Christmas tree)

¨ Pump jack, treaters, and separators

¨ Recycling equipment, including necessary flow lines

¨ Storage tanks

The owner of an oil or gas well interest is generally entitled to a deduction for depletion with respect to the income received from the production of oil and gas. This allowance has changed several times through the years, but at the present it is 15%.

image162

RISK FACTOR


Investments in a working interest unit of a drilling or acquisition oil or gas well have certain risk factors that investors must understand. Investors should have a professional advisor to review and evaluate the economic, tax, and other benefits / consequences of ownership of a working interest unit and are not to construe the contents of this web site, or any other information furnished by Arnco Oil & Gas as investment, legal, or tax advice.

Drilling for oil and gas involves a risk of partial or complete loss of investment and could result in non-profitable attempts through dry holes as well as completed wells that do not produce sufficient amounts to return a profit on the amount invested. Therefore, only risk monies should be invested.

In the public interest and for the protection of the investors, any kind of offer to sell or solicit an offer to purchase oil or gas interest over the internet on a private funded basis is not allowed. Before considering any kind of investment in oil or gas, investors should be acquainted with the company making the offer. 

There are risk factors and no guarantees in the oil and gas business, but for the few who like pioneering and purchasing interest in current producing properties and qualify, oil and gas can be highly profitable.

The above statements are warnings to anyone thinking about investing in the oil and gas industry.

Arnco Oil & Gas suggest that you call and discuss your interest in oil and gas and use tax dollars only.

image163

Contact Us

If you are interested in knowing more about our oil and gas projects, please send us a message below and we will be glad to get back with you.

ARNCO OIL & GAS LLC

Cookeville, Tennessee, United States

(931)526-7655