Joint Venture Partners WCSB provides much needed capital for oil and gas companies on better terms than those typically available through the markets or banks.
Enhanced IRR and Improved Capital Efficiency
Having a financial partner, such as WCSB can improve the rate of return of projects for the oil & gas companies as the operator spends disproportionately less of their capital in return for a lesser amount of "top-line revenues". The oil & gas companies enhanced IRR makes every dollar of capital more efficient.
Capital Without Loss of Control
The capital from WCSB allows the oil & gas companies to retain control of their programs without interference from a working interest partner.
No Loss of Gross Reserves
The operator is able to book 100% of the gross reserves versus booking a lesser amount of net working interest reserves, subject only to modest over-riding royalty.
Non-Competitive Financial Partner WCSB can be considered a financial partner rather than a directly competitive industry partner, will not be viewed as a threat to the operator's proprietary ideas and development or exploration programs.
CAPPEX Budget Accelerator The additional development capital from WCSB frees up money that the oil & gas companies can utilize on higher impact exploration projects while at the same time ensures that development projects are funded and brought to market on schedule. The expanded CAPPEX budget through the WCSB joint venture royalty financing program allows oil & gas companies to maintain operating momentum with respect to growing reserves and production through the drill bit.
Non-Dilutive Joint ventures royalty financing programs like that offered by WCSB allow oil & gas companies to access the capital necessary to fund CAPPEX budgets without having to issue shares at current market prices (which, in the view of many oil & gas executives, are currently significantly undervalued).
No Debt Allows for Stronger Balance Sheets
Accessing capital through the WCSB joint venture royalty structure allows oil & gas companies to bring on production from development and to a lesser extent exploration programs without incurring additional debt - which in turn allows such companies to maintain strong balance sheets.
Discover the new paradigm in energy investing
On June 3, 2010 WCSB presented to a select group of Canada’s most dynamic junior and mid-cap oil & gas producers at SEPAC’s Oil & Gas Investor Showcase 2010.
the royalty advantage
Royalties provide the owners with the benefits of sharing in production revenue without the responsibility of normal operating or capital costs associated with typical oil and gas company operations...