Learning Center » Royalty Advantages

Royalty Advantages

• Royalties provide owners with the benefits of sharing in production without the responsibility of normal operating or capital costs associated with typical oil & gas companies.
• A royalty is a registered titled ownership interest (%) of oil or gas production from a well.
• Royalties provide a stream of income for the owner for as long as the well produces.
• Royalties are paid out of top-line revenue before any operating expenses are accounted for.

Utilizing the WCSB investment structure, Limited Partners receive flow-through deductions tax deductions while at the same time earn a royalty or a percentage interest in the oil & gas production revenue that the wells generate.

Investors can expect to see the commencement of cash distributions within approximately 6-9 months from the closing date of the offering to which they invested. These cash distributions are directly deposited into their investment account.

Liquidity Event

The liquidity of each WCSB Limited Partnership is estimated to take place within 2.5-3 years of investment. Generally it takes about 12-15 months for new wells to settle into a reliable production range and once the wells have been on stream for 12-15 months then WCSB will commence the process of packaging them for sale. This process typically takes an additional 12 months or so. As a result, it is reasonable to consider a 30-36 month time horizon from the date of investment to anticipated timing of a liquidity event.