In 2014 the Oklahoma Legislature wiped out the 7.1% Gross Production Tax and levied a 2% Gross Production Tax on new wells brought on production after July 1, 2015. This tax is paid on the first 36 months of production after which the tax returns to 7.1% for the remainder of the life of the well.
This provision (a 2% GPT) for our working interest owner is the equivalent of increasing the Net Revenue Interest by over 5% (7.1%-2%) for those 36 months! This is usually the period when a successful well will be recovering the cost of drilling and completion and then reach pay out. Then for the future we enjoy dividends from our investment in the well.
Oklahoma is an “Energy Friendly” state, unlike some others in this country. Come drill with us.