Home > Boards > US OTC > Oil/Gas/Natural Energy Production > Mesa Offshore Trust (MOSH)
Followed By 19
Posts 1084
Boards Moderated 0
Alias Born 10/17/2006

Tuesday, December 18, 2007 7:38:39 PM

Re: thefranchise post# 1155

Post# of 27567

You should keep in mind that you can still lose your money investing in a trust the same as with any stock.

In fact, many passive trusts are structured as a "return of capital" which is why they often get a more favorable tax treatment. That is because the oil or gas or whatever eventually runs out if there is not an active program engaged to replace the reserves. As that happens, the unit price goes down and down. The royalty payments are supposed to compensate the unit holder as the air is let out of the balloon so to speak but this is not always the case that what gets received will equal or exceed the initial investment. "Mature" royalty trusts may not be such a great bargain if their reserves are almost all used up. mosh was thought to be pretty much one of these, it was thought to be all fizzled out as reflected in the vanishing unit price until the new information came to light. but this is a very rare and exceptional event.

Otherwise it would have likely terminated ( the equivalent of bankruptsy), remaining shareholders lose their money -- as many trusts do.

I used to really like pwi (prime west) which had a nice balance, savvy active management who balanced the cost of replacing reserves vs. return but they just got bought out by an arab outfit. The remaining ones out there are somewhere in between. All seem to be sagging now probably due to escalating rig costs (offshore rigs at $100,000 / day etc) i.e. huge costs of replacing reserves.

My impression is that trusts are at the end stage of the process. Exploration is the beginning phase.

Bottom line: One needs to research trusts just as carefully as stocks before investing. (trading is another matter but bears its own set of risks--one has a lot more frequent oppurtunities to screw up, with investing you have to wait a lot longer to see if you screwed up <g>).

A.I.S. Resources Identifies Prospective Drill Targets at Reliance Reef and Provides Bright Gold Project Update AIS May 20, 2022 8:00 AM

Lomiko Announces Commencement of Exploration Drilling for its La Loutre Graphite Project LMR May 19, 2022 10:56 AM

PTOP Announces MOBICARD ™ 2.0 Development Contract has been executed PTOP May 19, 2022 10:00 AM

Edison Lithium Spin-Out of Cobalt Assets EDDYF May 19, 2022 8:00 AM

Goldshore Resources Announces Innovative Technology Application for Moss Lake Project Exploration and Closing of Non-Brokered Financing GSHRF May 19, 2022 8:00 AM

Demand Brands kicks off cultivation at Corralitos Farms DMAN May 18, 2022 2:00 PM

Emerging Markets Report: Details, Details SYTA May 18, 2022 11:48 AM

American Green, Inc. ™ (OTC:ERBB) Purchases 40,000sq.ft. Cannabis Grow Building for $3,750,000 ERBB May 18, 2022 9:25 AM

Green Battery Minerals Completes Resource Expansion Drilling at Zone 1 and Intersects Numerous Holes Ranging from 150 - 200 Feet of Graphite CZSVF May 18, 2022 9:19 AM

Grove Inc. Programmatic Ad Technology, Interactive Offers, Secures Milestone Patent GRVI May 18, 2022 9:11 AM

AgriFORCE Growing Systems Completes Acquisition of Food Production & Processing IP from Manna Nutritional Group (MNG) AGRI May 18, 2022 9:11 AM

HPIL Holding Secures a $CAD 32 Million Capital Commitment from GEM Global Yield LLC SCS ("GEM") HPIL May 18, 2022 9:00 AM

Branded Legacy, Inc. Increases Revenue By Expanding In New York and Florida Company Adds New Disposable Vapes BLEG May 18, 2022 8:30 AM

Demand Brands enters $8.5 million agreement with Truleaf, Inc. to enter the live rosin market DMAN May 18, 2022 8:00 AM

Emergency Response Technologies Inc, a Wholly Owned Subsidiary of ILUS International (Ilustrato Pictures International Inc), Confirms the Appointment of Law Firm Lucosky Brookman LLP to Assist with Upcoming Plans ILUS May 18, 2022 7:35 AM