IPAA, Forbes & Chestnut Petroleum

Chestnut Petroleum agrees with Steve Forbes article, "Obama's anti-energy agenda kills jobs"

Nov 03, 2011, 14:04 ET from Chestnut Petroleum

DALLAS, Nov. 3, 2011 /PRNewswire/ -- Chestnut Petroleum, an Independent Petroleum Association of America (IPAA) member, wants to indicate our strong agreement with the Steve Forbes article, "Obama's anti-energy agenda kills jobs", in Politico and IPAA's President cover of it in the monthly member bulletin.

(Photo:  http://photos.prnewswire.com/prnh/20111103/DA99622)

The Chestnut Group of Companies concurs with Steve Forbes that the oil and gas industry does its fair share.  A review of Chestnut's oil sales statement to one of our purchasers for some of our fields in Texas and Louisiana for September, 2011 demonstrates this (see attached below).  Chestnut produced and sold to Texon $685,120.32 worth of oil in September and paid $81,270.42 in state production taxes which is 11.86% of the income taken off the top.

These production taxes at 11.86% of sales are paid to the states before we pay drilling and production costs, expenses, services, employees, employee health care insurance, leases, and Social Security obligations.  Of course, after all of the above we then pay county and parish property taxes, annual operators fees, high required FINRA self regulatory dues, and last but not least Federal Income Tax on all profits.

"The oil and gas business in America is one of the major contributors to the United States Federal and State governments in fees, dues, and taxes," says Mark Plummer, President and Founder of Chestnut Petroleum and Chestnut Energy Partners. "I consider it a privilege to work and produce oil and gas in America for Americans, but the more taxes we pay the less employees we can hire."

About Us

Chestnut Petroleum is a privately owned independent owner-operator that conducts drilling, recompletion and reentry, and general operations in proven producing oil and natural gas fields primarily in Texas and Louisiana. Led by founder and President, Mark A. Plummer, Chestnut Petroleum has followed a philosophy of buying smart, managing costs, and improving production since its inception in 1994. Chestnut Petroleum applies a no-nonsense approach to asset management that drives its ability to create value throughout all of its operations. The Company's current asset portfolio encompasses approximately 250 wells in the following fields: Gillis English Bayou Unit (GEB), Calcasieu Parish, LA; East Texas Field, Gregg County, TX; Signal Hill East Unit, Long Beach, CA; Hardeman County, TX; Barnett Shale, Hood & Tarrant Counties, TX; Lea County, NM; and Eliasville Field, TX.

Chestnut Energy Partners is the exclusive broker-dealer for Chestnut Petroleum; and is a registered broker-dealer and member of the Financial Industry Regulatory Authority (FINRA, formerly the NASD).

To learn more, visit the company's web site at http://www.chestnutpetroleum.com

Laura Puckett, 972-715-8814, lpuckett@chestnutpetro.com

SOURCE Chestnut Petroleum