Empire Energy Capital

Welcome to Empire Energy Capital.

For physicians, business owners, and other professionals exploring oil and gas investing, understanding the investment begins with three questions: What do you own? What do you pay? And how can that ownership generate income?

This site explains working interests, how production revenue is shared, and how drilling costs and potential tax deductions fit into the overall economics. You will find straightforward explanations, public industry information, and illustrative examples to help you ask informed questions. We also explain the risks, because understanding an investment means understanding both its potential and its obligations.

Empire Energy Capital. Oil and gas investment education.

Understanding oil and gas working interest.

Oil and gas investing can take many forms. An investor may own shares of an energy company, mineral rights, royalty interests, pipelines, debt, or a direct economic interest in producing wells. One of the most distinctive forms is a working interest — an ownership interest in the operation of an oil or natural gas property.

Unlike a stockholder who owns shares of a corporation, a working-interest owner participates more directly in the economics of specific wells or properties. That means two things. The owner participates in the revenue. The owner also participates in the cost and risk of developing and operating the wells. This distinction is fundamental.

A working interest can generate cash flow from production and may give rise to certain federal tax deductions. It also carries geological, commodity-price, operational, financial, regulatory, and liability risk. The tax treatment should be viewed as one component of the investment economics, not as the reason an otherwise poor investment becomes a sound one.

Tax treatment can improve the economics of a sound investment. It cannot repair the economics of an unsound one.

Working-interest participation is unusual because the owner may participate simultaneously in a real operating business, a wasting natural-resource asset, ongoing production cash flow, and a specialized federal tax regime. The interest should first be examined on the quality of the operator, geology, drilling economics, working interest, net revenue interest, expected production, costs, commodity-price assumptions, and risk. Only then should the tax consequences be incorporated.

Empire Energy Capital

Leadership

Ahmed F. Aslam, M.D.

Founder and Chief Executive Officer, Empire Energy Capital

Interventional cardiologist. Practicing physician with offices in New York. Founder and Chief Executive Officer of Empire Energy Capital.

Syed Taiyab

Managing Partner, Empire Energy Capital

Petroleum Engineering, Texas A&M University. MBA, SMU Cox School of Business. Co-Founder of Everest Energy Partners and former President and Managing Partner. Business development, capital raising, acquisitions, deal structuring, and leasehold aggregation. Sourced and oversaw valuation of over $350,000,000 in potential acquisitions.

Sandesh Karki

Managing Partner, Empire Energy Capital

Petroleum Engineering, Texas A&M University. MBA, SMU Cox School of Business. Co-Founder, Chief Executive Officer and Managing Partner of Everest Energy Partners. Asset management, operations, joint-venture diligence, and field development. Has managed operations of over 115 oil wells.

Prepared by Empire Energy Capital. Educational briefing only.

Educational material only. Not an offer to sell a security. Not tax, legal, or investment advice.

Welcome to Empire Energy Capital.

Understanding oil and gas working interest.

Tax treatment can improve the economics of a sound investment. It cannot repair the economics of an unsound one.

Four sections of this briefing.

Leadership

Primary authorities, and how to request a discussion.