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For the last several years, areas of South Texas have experienced a huge surge in oil and gas drilling activity into the Eagle Ford shale which extends from the Mexican border into northeast Texas for several hundred miles. This deep shale formation has been vertically drilled for decades, but recent developments with hydraulic fracturing coupled with horizontal drilling capability are now being used to extract oil and gas deposits from this impermeable layer of shale, previously unattainable in economic terms. Several years ago, mineral leases in these areas were taken for a few hundred dollars an acre. These same leases are now commanding $10,000 or more an acre, and for some mineral owners, monthly royalty checks received are for amounts up to six figures.

When you walked into the ice cream parlor for the first time, you had a number of flavors to choose from; should you stay with simple vanilla, move to chocolate or dive into cookies and cream. Each flavor has its’ own taste and depending on the reason for your trip, your taste may differ. The same is true when it comes to your financial statements.

Wow, what a year! This summer was unusually harsh with the lack of rain and the sweltering temperatures. We have many good things to look forward to: the upcoming holidays, time with family and cooler temperatures. This is also a good time to start year-end tax planning to help save taxes for 2011 and future years.

Here are some things to keep in mind and evaluate before ringing in the New Year!

GET DEPRECIABLE ASSETS PLACED IN SERVICE BEFORE YEAR END

We at ADKF are starting a new blog that will contain important things we think you should know.  It will be like a newletter where we will talk about financial auditing, financial statement preparation, tax preparation and tax planning among other topics of interest.   Please check back often and subscribe to our RSS feed by clicking the orange icon on the blog page.