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SOURCE ROCK ROYALTIES CLOSES ALBERTA LIGHT OIL ROYALTY ACQUISITION WITH CAPITAL COMMITMENT
SOURCE ROCK ROYALTIES CLOSES ALBERTA LIGHT OIL ROYALTY ACQUISITION WITH CAPITAL COMMITMENT ...
About this update from Source Rock Royalties Ltd.
[{"type":"text","content":"\n \n \n \n SOURCE ROCK ROYALTIES CLOSES ALBERTA LIGHT OIL ROYALTY ACQUISITION WITH CAPITAL 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 March 27, 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 light oil focused royalties, announces that it has closed the acquisition of a 5% gross overriding royalty (the \"GORR\") in three light oil properties in\n \n Central Alberta\n \n (the \"GORR Lands\"). The purchase price was\n \n $1.6 million\n \n , and the transaction has an effective date of\n \n January 1, 2023\n \n .\n \n \n \n \n \n \n \n \n \n The GORR Lands are operated by a private\n \n Calgary\n \n -based oil and gas company (the \"Royalty Partner\") and include all the Royalty Partner's mineral interests in which they have rights to produce oil. The Royalty Partner's oil production from the GORR Lands was 420 bbl/d of low-decline light oil in\n \n January 2023\n \n (21 bbl/d of light oil royalty production). Approximately 90% of the current oil production from the GORR Lands is under waterflood.\n \n \n \n Capital Commitment\n \n \n \n As part of the purchase of the GORR, Source Rock has received a capital commitment for\n \n $3.2 million\n \n in operations to be completed on the GORR Lands prior to\n \n December 31, 2024\n \n (the \"Capital Commitment\"). Operations associated with the Capital Commitment will be focused on optimizing and recompleting existing wellbores and additional waterflood initiatives.\n \n \n \n President's Message\n \n \n \n We are very pleased to add to our portfolio of light oil royalty lands. We have built a relationship with the Royalty Partner over several years and have aligned views on how royalty capital can support the operational and acquisition goals of Canadian oil and gas companies. We are excit...