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Topaz Energy Corp. Announces Closing of Two Strategic Royalty Acquisitions
Topaz Energy Corp. Announces Closing of Two Strategic Royalty Acquisitions Cana...
About this update from Topaz Energy Corp
[{"type":"text","content":"\n \n \n \n Topaz Energy Corp. Announces Closing of Two Strategic Royalty Acquisitions\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 \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n CALGARY, AB\n \n ,\n \n Jan. 4, 2021\n \n /CNW/ - Topaz Energy Corp. (TSX: TPZ) (\"Topaz\" or the \"Company\") is pleased to announce the completion of two previously announced gross overriding royalty acquisitions which enhance Topaz's future growth outlook and demonstrate the Company's growth strategy to acquire value-enhancing assets from high-quality strategic partners that are accretive on a per share basis.  The acquisitions were funded from the Company's available cash on hand.\n \n \n \n DEEP BASIN ROYALTY ACQUISITION\n \n \n \n Topaz acquired a newly-created gross overriding royalty interest on natural gas, crude oil, and condensate production on over 720,000 gross acres of Tourmaline Oil Corp.'s (\"Tourmaline\") developed and undeveloped lands in the Alberta Deep Basin (\"Deep Basin\"), which is contiguous with Topaz's existing Deep Basin royalty interest acreage, for total cash consideration of\n \n $130 million\n \n (\"Deep Basin Royalty Acquisition\"). Current production from the Deep Basin Royalty Acquisition lands is estimated by Tourmaline at 76,000 boe/d which Tourmaline expects will increase to 85,000 boe/d over the next two years in conjunction with an estimated\n \n $300 million\n \n expansion of its capital plan over the next two years. Tourmaline is currently operating three active drilling rigs on the Deep Basin Royalty Acquisition lands.\n \n \n Pursuant to the Deep Basin Royalty Acquisition, Topaz acquired a 2% gross overriding royalty interest on natural gas production until\n \n December 31, 2021\n \n ; increasing to a 3% gross overriding royalty interest on natural gas production thereafter; and a 2.5% gross overriding royalty interest on crude oil and condensate production from the lands. Topaz estimates that, based on Tourmaline's estimated capital plan, the Deep Basin Royalty Acquisition will provide royalty production growth of 12% in 2021, and 24%...