Maximum Energy Development, LLC106 East Wayne Street , Glasgow, Kentucky, United States

Maximum Energy Development is an oil and gas production company based in Glasgow, KY. We drilled our first well in 2007 and since have had over 30 new oil discoveries mainly in the state of Kentucky with one project in Oklahoma. MEDs motto "stay lean and stay mean" has allowed the company to operate on a low overhead with the two partners conducting the daily operations from investor relations to drilling and the completions of wells. This concept allows your investment dollars to go further in the drilling and exploration of new wells. When you invest with MED you deal directly with the partners of the company. Their oil is sold exclusively to Sunoco, Inc. out of Sugar Land, TX. Randy Shields of Bowling Green KY is their consulting geologist with over 30 years of oil field experience who works strictly on a project by project basis as needed for the company. MED uses many different resources for drilling wells such as seismic data, Kutt radio metrics, Sub surface mapping with structure data and wave log technologies when applicable. Our goal is simple - keep the consistent business model that has worked in the past while continuously growing our production base. We focus exclusively in the exploration of oil and gas, while constantly researching new ways and technologies to help develop new and existing oil and gas fields.

Direct Participation Programs

 Direct Participation Programs (DPPs) are a time-tested method of investing in the vibrant energy sector for "accredited" high net worth investors ($1-million in assets). DPP investor ownership of a portion in one or more oil or natural gas wells are a cash-flow generating alternative to investing in publicly traded oil or gas sector stocks or trading energy commodity futures. Large DPPs are offered through brokerage houses. DPPs are also offered by independent non-public companies such as Maximum Energy Development, LLC. Investing with an independent oil and gas producer can increase investor risk, but correspondingly increases potential return by limiting the number of involved investors, as well as reducing manage- ment, advertising and legal costs, while, at the same time, maximizing pass-through tax benefits and returns.

Tax Incentives

image When investing in MEDs direct participation program, the investment capital contributed is used to acquire properties to develop oil and gas reserves - the produced oil, and gas is sold monthly with revenues etc. The approved tax incentives pass through directly to the partners, therefore, allowing for a considerable reduction in personal tax liability in most circumstances. Here are the different tax advantages:

• Includes all labor, chemicals, mud, grease and other items neces- sary for drilling that makes up 65-80% of the total cost. These are 100% deductible in the year incurred.
• This includes all the equipment necessary to completed a well tanks, pump jacks, rods, tubing, down hole pumps etc. These are also 100% deductible but must be depreciated over a seven year period.
• Tax code states that a Working Interest in an oil and gas well is not considered to be a passive activity. This means that all net losses are active income and can be offset against all other ordinary income.
• Percentage Depletion Allowance is specifically intended to encourage participation from small companies and investors in oil and gas drilling. This tax benefit allows 15% of all gross income from oil and gas wells to be tax-free.
• Purchases of Leases and mineral rights are subject to cost depletion which is an operating expense. Administrative, legal, accounting expenses and lease operating costs are also 100% tax deductible in they year they incurred.