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Topaz Energy Corp. Announces Strategic Charlie Lake Royalty Acquisition to Advance its Position as the Largest Contiguous Charlie Lake Royalty Holder in the Peace River High Area of Alberta
Topaz Energy Corp. Announces Strategic Charlie Lake Royalty Acquisition to Advance its Po...
About this update from Topaz Energy Corp
[{"type":"text","content":"\n \n \n \n Topaz Energy Corp. Announces Strategic Charlie Lake Royalty Acquisition to Advance its Position as the Largest Contiguous Charlie Lake Royalty Holder in the Peace River High Area of Alberta\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 April 12, 2021\n \n /CNW/ - Topaz Energy Corp. (TSX: TPZ) (\"Topaz\" or the \"Company\") is pleased to announce that it has entered into a non binding agreement with Tamarack Valley Energy Ltd. (\"Tamarack\") for the purchase of a newly created gross overriding royalty interest in the Peace River High area of\n \n Alberta\n \n for total purchase consideration of\n \n $32.0 million\n \n (the \"Royalty Acquisition\"). The Royalty Acquisition provides free cash flow growth and enhanced financial sustainability for Topaz while enabling Tamarack to advance its own growth.\n \n \n \n \n \n \n \n \n \n Pursuant to the Royalty Acquisition, Topaz will acquire a newly created 2% gross overriding royalty interest on crude oil, conventional natural gas and natural gas liquids from approximately 300,000 gross acres of Tamarack's developed and undeveloped lands which are focused on\n \n Charlie Lake\n \n light oil development (approximately 210,000 gross acres) (\"Royalty Acquisition Lands\").  Average production from the Royalty Acquisition Lands during\n \n March 2021\n \n exceeded 13,000 boe/d (71% crude oil and natural gas liquids) which Topaz expects Tamarack will maintain between 12,000 and 13,000 boe/d through future capital development and is supported by a\n \n $60 million\n \n minimum capital development commitment.  Topaz will fund the Royalty Acquisition from its available cash on hand.\n \n \n The Royalty Acquisition is expected to close in\n \n June 2021\n \n , subject to entering into definitive agreements and satisfaction of customary closing conditions including Tamarack completing a corporate acquisition it announced today.\n \n \n \n Strategic Rationale\n \n \n \n The Royalty Acquisition Lands are contiguous with Topaz's existing 420...