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SOURCE ROCK ROYALTIES ACQUIRES ROYALTY INTEREST IN PRODUCING CLEARWATER OIL LANDS WITH MATERIAL DRILL COMMITMENT
SOURCE ROCK ROYALTIES ACQUIRES ROYALTY INTEREST IN PRODUCING CLEARWATER OIL LANDS WITH MATERIAL D...
About this update from Source Rock Royalties Ltd.
[{"type":"text","content":"\n \n \n \n SOURCE ROCK ROYALTIES ACQUIRES ROYALTY INTEREST IN PRODUCING CLEARWATER OIL LANDS WITH MATERIAL DRILL COMMITMENT\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S./\n \n \n \n \n \n \n CALGARY, AB\n \n \n ,\n \n \n Dec. 4, 2023\n \n \n /CNW/ - Source Rock Royalties Ltd. (\"Source Rock\") (TSXV: SRR) (TSXV: SRR.WT), a pure-play oil and gas royalty company with an established portfolio of oil royalties, announces that it has closed the acquisition of a gross overriding royalty (the \"GORR\") in 60,800 net acres (95 sections) of largely contiguous land in the Figure Lake area of central Alberta (the \"GORR Lands\") for a purchase price of\n \n $8.0 million\n \n (the \"Purchase Price\"). The Purchase Price is subject to financial adjustments effective\n \n October 1, 2023\n \n and was funded with cash on hand.\n \n \n \n \n \n \n \n \n \n The GORR has a 1.5% royalty rate until cumulative royalty revenue received by Source Rock equals the Purchase Price, at which time the royalty rate reduces to 1.0%.\n \n \n Rubellite Energy Inc. (\"Rubellite\") (TSX: RBY) is the operator of the GORR Lands. The GORR Lands comprise a portion of Rubellite's lands in the Figure Lake area and certain adjacent acreage. Production from the GORR Lands is entirely from the Clearwater formation and would have generated 43 bbl/d of heavy oil royalty production in\n \n October 2023\n \n . The GORR Lands are 80% undeveloped and there were 36 horizontal wells contributing to production in October. Rubellite has been actively drilling the GORR Lands during Q4 2023.\n \n \n \n Material Drill Commitment\n \n \n \n Source Rock has received a drill commitment for 59 additional horizontal wells (each a \"Drill Commitment Well\") to be drilled on the GORR Lands prior to\n \n June 30, 2026\n \n (the \"Drill Commitment Deadline\"). Source Rock is entitled to non-performance damages for each Drill Commitment Well not drilled before the Drill Co...