Home-grown investment opportunity in Saskatchewan’s oil and gas sector

By Katrina A. T. Senyk

oil donkey

Photo caption: Miss Barabanov/ Flickr

The Golden Opportunities Fund (“the Fund”) has been providing Saskatchewan residents with the opportunity to invest at home for 14 years. Managed by Westcap Mgt. Ltd., Saskatchewan’s largest private-venture capital fund manager with over $500 million under management, the Fund was the first provincial Retail Venture Capital Fund in Saskatchewan, and today has grown to over 25,000 investors. Golden Opportunities expanded its offerings this year to provide Saskatchewan investors with the opportunity to invest in a portfolio specifically focused on the province’s oil and gas industry.

The Resource Class R-share is designed for investors seeking 100 per cent exposure to Saskatchewan resource companies, including oil and gas exploration and development and other resource services. The R-share is concentrated on emerging plays in Saskatchewan and provides access to experienced oil and gas management teams focused on our province’s thriving oil and gas industry.

Saskatchewan’s oil and gas industry continues to be one of our province’s leading sectors and 2012 marked another exceptional year with record oil production, up more than seven per cent from the previous record of 161 million barrels set in 2008, according to the Saskatchewan Ministry of Economy. The demand for crude oil is only expected to increase and with an estimated 1.2 billion barrels of established crude oil reserves, Saskatchewan is in an ideal position to meet that demand.

Grant Kook, president and CEO of Westcap Mgt. Ltd., said that being able to invest in a share-class specific to an industry is a unique opportunity to this province. “You can’t go to Ontario or the Atlantic regions or even B.C. and say, ‘Which part of the economy do I want to help grow?’. We have that opportunity here in Saskatchewan since our province is so diverse.”

This was an ideal time for Golden Opportunities to launch a dedicated resource share option, given the current state of Saskatchewan’s oil and gas industry combined with the Fund’s strategic partnerships with well-known oil and gas management teams developed from past activity.

Although the R-share is new to Golden Opportunities’ portfolio, investing in Saskatchewan’s oilpatch certainly is not. The oil and gas sector remains the Fund’s largest portfolio weighting in its Diversified Class A-share, the Fund’s longeststanding and largest asset class comprised of an energized, balanced portfolio. Saskatchewan holds a rich endowment of petroleum reserves – an estimated 4.2 billion barrels of recoverable oil and four trillion cubic feet of natural gas – representing enough to heat every home in Canada for four years. Saskatchewan has a total of 45.6 billion barrels of oil-inplace; however, less than 13 per cent of the province’s oil is recoverable based on current conditions. Enhanced oil recovery techniques, such as horizontal drilling and multi-stage fracturing, and experienced oil and gas management teams using innovative technologies are crucial to increase efficiency and maximize the potential of the oil in the ground.

Saskatchewan’s oil and gas sector is innovative, sustainable and thriving with a corporate landscape that is diverse. Golden Opportunities is leveraging strategic partnerships to benefit from the skills and knowledge of successful management teams operating in our energy-rich industry and providing residents with a home grown investment opportunity to participate in the future potential of Saskatchewan’s oil and gas industry.

Investments in the Golden Opportunities Fund can only be made through a licensed financial advisor.

For more information on Golden Opportunities Fund and its shareclasses, please contact your financial advisor, or visit www.goldenopportunities.ca. 

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