OKLAHOMA CITY - March 19, 2026 - PRLog -- Bass Energy & Exploration (BassEXP), a privately held oil and gas development company specializing in conventional stacked-pay drilling programs across Oklahoma's proven legacy fields, today announced the publication of an expanded oil & gas investment tax benefits guide titled "Percentage vs. Cost Depletion: Which Method Is Best for Investors?" The resource is available now at: bassexp.com/investor-resources/percentage-vs-cost-depletion-in-oil-gas.
The guide is the latest addition to BassEXP's growing library of plain-English investor education content including the downloadable Oil & Gas Investor Tax Toolkit, the free Investor's Guide on How to Invest in U.S. Oil, and the ONG Report Video Series covering IDCs, depletion, active versus passive income treatment, and 1099 reporting in plain English.
Filling a Gap in Investor Education
While intangible drilling costs (IDCs) are widely discussed in oil and gas investment circles, depletion allowances, the tax deductions that reduce taxable production income for the life of a producing well, are far less understood by individual investors. BassEXP's updated guide addresses that gap directly.
"Most investors we talk to have a solid understanding of first-year IDC deductions," said Preston Bass, founder of Bass Energy Exploration. "What they often don't fully appreciate is what happens in years five, ten, and fifteen. Depletion is the mechanism that keeps working long after the drilling deductions are gone. For a well that produces for twenty years, the cumulative value of those ongoing deductions is real and significant. We want every investor we work with to understand the full picture, not just the first chapter."
What the Guide Covers
The expanded resource walks investors through the two primary depletion methods available under U.S. tax law, the differences between them, and how each fits into the broader tax structure of working-interest ownership. Specific topics include:
- What oil depletion allowances are and how they work
- How cost depletion is calculated using a unit-of-production method
- How percentage depletion works as a fixed 15 percent deduction on gross production income under Section 613A
- A side-by-side comparison of both methods across key investor-relevant dimensions
- How depletion interacts with IDCs, tangible equipment depreciation, and lease operating expenses across the full life of a well
- Eligibility rules and IRS income limitations that investors and their CPAs need to understand
- The importance of accurate monthly reporting and documentation in supporting depletion deductions
- A seven-question FAQ section addressing the most common investor questions on the topic
BassEXP has built its reputation on transparency, honest communication, and treating investors like family. The company's educational content reflects that philosophy directly. Rather than leading with promotional messaging, BassEXP leads with information, giving prospective investors the tools they need to have an informed conversation with their CPA and make confident decisions about whether direct working-interest ownership is right for their situation.
"We are not here to oversell what oil and gas can do for someone," Bass states. "We are here to explain it clearly, honestly, and completely. If an investor walks away from our content better equipped to evaluate any oil and gas opportunity, that is a win regardless of whether they end up working with us."
The updated depletion guide reflects BassEXP's ongoing investment in building one of the most straightforward and trustworthy investor education platforms in the independent oil and gas sector.
About Bass Energy & Exploration
Bass Energy & Exploration, LLC (BassEXP) is an independent, family-owned oil and gas company headquartered in Oklahoma City, Oklahoma. The company focuses on identifying and developing oil and gas opportunities in some of Oklahoma's most established and productive basins, including STACK and SCOOP, leveraging deep regional knowledge and disciplined geological analysis.
BassEXP operates with an investor-first philosophy, maintaining lean overhead and a straightforward business model designed to keep more investor capital working in the field. The company invests alongside its partners in every project, aligning incentives through shared risk, transparent communication, and a long-term focus on responsible development and sustainable value creation.
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Source: Bass Energy & Exploration
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