CANADA’S POOL OF OPPORTUNITY
The Western Canadian Sedimentary Basin (the ”WCSB”) is a vast sedimentary basin underlying 1,400,000 square kilometres of Western Canada.
Consisting of massive wedges of sedimentary rock about 6 kilometres thick under the Rocky Mountains, the WCSB contains one of the world’s largest reserves of oil and natural gas.
Through analysis and key relationships, WCSB Royalty Income Investment Programs carefully select already successful oil and gas companies in the WCSB to place investors capital.
WHAT’S IN THE BASIN?
Conventional Oil Reserves
The WCSB is considered a mature area for exploration and petroleum. [source: National Energy Board: Short-term Outlook for Canadian Crude Oil 2006] While there are two different types of conventional oil found in the WCSB, namely light crude oil and heavy crude oil, most developments have been focusing on natural gas and oil sand reserves.
Oil Sand Reserves
The three major oil sand reserves in the WCSB are the Athabasca Oil Sands, the Cold Lake Oil Sands and the Peace River Oil Sands which are all located in Alberta.
As reported by the Alberta Government, Alberta contains the second largest proven concentration of oil in the world, the vast majority of which is found in oil sands deposits.
There are 173 billion barrels of oil in the oil sands proven to be recoverable with today’s technology and under current economic conditions. In addition, there is an estimated total of 315 billion barrels of potentially recoverable oil in the oil sands.
As of December 2007, there were approximately 4,264 oil sands agreements within the province, totaling 64,919 square kilometres under development. [source: Alberta Oilsands : www.oilsands.alberta.ca]
Natural Gas Reserves
Canada is the third largest producer and the second largest exporter of gas in the world and the majority of it comes from the WCSB. It is estimated that 87 trillion cubic feet (Tcf) of recoverable, conventional natural gas is still beneath our feet. Alberta’s coal seams could contain as much as an additional 500 Tcf.
Natural gas is the largest single source of resource development revenue for Albertans, accounting for more than $42.6 billion in royalties paid to the Government of Alberta from fiscal 2000/2001 to fiscal 2006/2007. This total represents about 63 per cent of all provincial revenue from non-renewable resources over that period. [source: Alberta Energy: www.energy.gov.ab.ca]
The WCSB contains the majority of Canada's usable coal resources.
As reported by the Alberta Energy Board, Alberta alone contains has 33.6 Gigatonnes (billion tonnes) in proven coal reserves, representing 70 per cent of Canada's total reserves. Alberta's coal mines typically produce around 30 million tonnes of marketable coal annually.
Alberta's coal contains more than twice the energy of all of the province's other non-renewable energy resources, including conventional oil and pentanes, natural gas, natural gas liquids, and bitumen and synthetic crude. [source: Alberta Energy: www.energy.gov.ab.ca ]
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...
frequently asked questions
What are the tax consequences to the investor at time of liquidation?
oil & gas company incentives
WCSB provides much needed capital for oil & gas companies on typically better terms than those available through markets or banks...