Traditional Flow-Through Vs. Maple Leaf Oil & Gas Royalty Income Programs
Maple Leaf Oil & Gas Royalty Income programs provide investors with a monthly income generating investment and tax deductible alternative to traditional flow-through limited partnership programs.
The table below compares the differences and similarities of an investment in a Maple Leaf Oil & Gas Royalty Income Limited Partnership to an energy focused traditional flow-through program.
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| TRADITIONAL ENERGY FOCUSED FLOW-THROUGH | MAPLE LEAF OIL & GAS ROYALTY INCOME PROGRAMS |
1. Income | NIL | Yes, monthly cash distributions |
2. Premiums Payable | Yes, 15%+ paid on average | No premiums |
3. Capital Market Correlation (i.e. exposure to capital market volatility) | 100% | NIL |
4. Investment Holdings | Small and micro-cap resource companies | Royalties on oil and natural gas production, and land |
5. Tax Deduction | 100% in year of investment | 100% over 5+ year period |
6. Capital Gains on Disposition | Yes | Yes |
7. Liquidity | 18-24 months (approximately) | 18-24 months (approximately) |
8. Fee's Payable to Agents | 5.75% | 5.75% |
9. General Partner's Share | 2% of NAV per Annum | 5% of Cash Distributions and
asset values on disposition |
10. Expenses of Offering | Capped at 2% | Capped at 2% |
Development Drilling Focus
Development drilling means drilling into existing and producing oil and gas pools, and these pools generally have an 85% average rate of success.
Understand how development drilling works