Pacific Coast Oil Trust (OTCMKTS: ROYTL) is an energy royalty trust that holds net profits interests in oil and gas properties located in California. The trust was established to receive a specified share of the revenues, less operating costs and capital expenditures, generated by its underlying assets, offering investors exposure to upstream oil and gas production without direct operational responsibilities.
The trust’s primary assets are interests in the Dos Cuadras oil field in Santa Barbara County and the Rincon oil field in Ventura County. These properties produce primarily heavy crude oil, and the trust’s income is derived from monthly sales receipts after the deduction of allowable operating expenses, taxes and capital costs. Pacific Coast Oil Trust does not engage in exploration or development activities; its role is limited to holding and monetizing these established working interests.
Administration of the trust is handled by its sponsor, Pacific Coast Energy Company, which oversees the calculation and distribution of net profits to unitholders. Distributions are typically paid on a monthly basis, and the trust structure provides certain tax efficiencies by passing through income directly to investors. Pacific Coast Oil Trust does not employ an internal management team; rather, administrative and accounting services are contracted through third-party providers under the oversight of its sponsor.
By focusing exclusively on royalty and net profit interests, Pacific Coast Oil Trust offers a streamlined investment vehicle for those seeking exposure to California crude oil production. Its cash-flow model and limited operating scope differentiate it from traditional upstream oil companies, making it a specialized instrument for investors looking for periodic income tied to established oilfield performance.
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