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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: MoneyPenny who wrote (113476)	11/13/2008 11:55:17 AM
From: cyesp	Read Replies (1) \| Respond to of 206154

Amroys are generally passive vehicles, similar to being the landowner (as opposed to producing companies owning the lease). They receive either royalty interest or net profits interest (royalty stream less a share of the capital investment). The operator of the lease can drill and invest in projects that add reserves on the lease without any cost attributable to the Amroy. So, Amroy reserves can increase, but the operator of the lease determines whether any additional wells will be drilled. BTW, some (not you MP) seemed confused about distributions. Amroys distribute all royalty income less the minor admin expenses. The dividend is not "maintained" in any way, it is simply a pass through. CanRoys drill for their own account and determine how much to retain or pay out. They are more similar to US producing companies with over sized dividends.