Working interest offering · DJ Basin
Foster5 Five-Well Package
Five new horizontal oil and gas wells on one pad in the Wattenberg Field, Weld County, Colorado, operated by Civitas Resources (Crestone Peak Resources Operating LLC).
- 2 Codell and 3 Niobrara wells
- Laterals of about 18,200 ft (about 3.4 miles)
- $48.4 million gross drilling and completion budget
- Drilling planned for January 2027
The wells sit in Sections 18, 19, 30 and 31 of Township 2 North, Range 68 West, in one of the most heavily developed horizontal oil fields in the country.
- Working interest
- 0.137626% in each well
- Net revenue interest
- 0.103219% in each well
- Wells
- All 5
- Revenue
- Oil and natural gas
- Operator
- Civitas Resources (Crestone Peak Resources Operating LLC)
- Location
- T2N-R68W, Sections 18, 19, 30 & 31, Weld County
- Drilling
- Planned for January 2027
Projections
Projected returns per $110,000 unit
A low–high range from two nearby wells; the high case is Clover 29-12HZ, the best-performing well in the area. Gross income is before 10% lease operating expenses (LOE) and taxes; payout is after LOE. Gas at $3.00/Mcf.
| Per unit | $80 / bbl | $90 / bbl | $100 / bbl |
|---|---|---|---|
| Year 1 – monthly gross income | $6,632 – $12,357 | $7,327 – $13,623 | $8,022 – $14,890 |
| Year 1 – annual gross income | $79,584 – $148,282 | $87,925 – $163,481 | $96,265 – $178,679 |
| Estimated payout (after LOE) | 10 – 60+ mo | 9 – 34 mo | 9 – 23 mo |
Tax advantages
Drill in January 2027, deduct in 2026
Prepaid drilling costs can be deducted in the year paid when drilling begins within 90 days after year-end. Fund your units by December 31, 2026 to claim the intangible drilling cost (IDC) deduction, approximately 85% of each unit, on your 2026 return.
Approximately $93,500 per unit (about 85%) of intangible drilling costs (labor, fuel, mud, cementing, fracking), deductible in 2026 when paid by December 31, 2026.
Approximately $16,500 per unit (about 15%) of tangible equipment (casing, tubing, wellhead, tanks), depreciated over 7 years.
Percentage depletion shelters 15% of gross production income from tax every year the wells produce.
Your net cost after the IDC deduction
| Per $110,000 unit | 40% tax rate |
|---|---|
| Unit price | $110,000 |
| Year-1 IDC deduction (approx. 85%) | $93,500 |
| Tax savings from IDC at 40% | ($37,400) |
| Net after-tax cost of the unit | $72,600 |
How to read these numbers
The tax figures assume a combined 40% tax rate and that you hold the working interest directly and have enough income to use the deductions. Your own rate and situation will change the result, so review them with your CPA.
Returns per unit after tax (40% tax rate)
Low–high range from two nearby wells (high case: Clover 29-12HZ, the best well in the area). Gross income is before 10% LOE and taxes. Return, payout and multiple are after LOE, depletion, depreciation and 40% tax, on the $72,600 net cost.
| Per unit | $80 / bbl | $90 / bbl | $100 / bbl |
|---|---|---|---|
| Year 1 – monthly gross income | $6,632 – $12,357 | $7,327 – $13,623 | $8,022 – $14,890 |
| Year 1 – annual gross income | $79,584 – $148,282 | $87,925 – $163,481 | $96,265 – $178,679 |
| Year 1 – after-tax return | 67% – 124% | 74% – 136% | 81% – 149% |
| Year 2 – monthly gross income | $1,990 – $3,707 | $2,198 – $4,087 | $2,407 – $4,467 |
| Payout of net cost (after tax) | 10 – 41 mo | 9 – 27 mo | 9 – 21 mo |
| 5-year gross income | $121,763 – $226,872 | $134,525 – $250,125 | $147,286 – $273,379 |
| 5-year multiple (after tax) | 1.1x – 1.9x | 1.2x – 2.1x | 1.3x – 2.3x |
Know the risks. These are projections, not guarantees. Wells can produce less than the comparison wells or fail entirely, oil and gas prices can fall below the cases shown, costs can run over budget, and tax rules and their application to you can change. You could lose your entire investment.
Interested in Foster5?
Talk with Jeff Carnahan about the offering documents, your timing for a 2026 deduction, and whether it fits your situation.
Projections are estimates, not guarantees. Low and high cases use first-12-month oil and gas from Dream Weaver South 3E-21H (Niobrara, 11,277 ft lateral) and Clover 29-12HZ (Codell, 12,336 ft lateral), scaled to Foster5's ~18,200 ft laterals, with later-year declines based on area history. They are not an operator forecast or reserve report.
Tax figures are illustrative, use a combined 40% tax rate, and assume the investor holds the working interest directly, has enough income to use the deductions, that the 85%/15% IDC/TDC allocation is supported by the drilling costs paid, and that prepaid IDC is paid by December 31, 2026 under a binding obligation with drilling beginning by March 31, 2027 (IRC §461(i)). Eligibility for IDC deductions, percentage depletion and active-income treatment depends on each investor's situation and how the interest is acquired. The alternative minimum tax is not included. Consult your own CPA or tax advisor.
© 2026 Rixford Resources LLC. This website is for informational purposes only and is not an offer to sell or a solicitation of an offer to buy any security. Any offering will be made only through official offering documents and only to qualified investors. Investments in oil, gas, and helium wells involve substantial risk, including the possible loss of your entire investment. Projections and statements about future results are estimates and are not guaranteed. Consult your own financial, legal, and tax advisors before investing.