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Topaz Energy Corp. Announces Strategic Royalty Acquisition in the Clearwater Area of Alberta
Topaz Energy Corp. Announces Strategic Royalty Acquisition in the Clearwater Area of Albe...
About this update from Topaz Energy Corp
[{"type":"text","content":"\n \n \n \n Topaz Energy Corp. Announces Strategic Royalty Acquisition in the Clearwater 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 March 5, 2021\n \n /CNW/ - Topaz Energy Corp. (TSX: TPZ) (\"Topaz\" or the \"Company\") is pleased to announce 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 underpinned by a multi-year minimum capital development commitment for total purchase consideration of\n \n $13.7 million\n \n (the \"Royalty Acquisition\"). The Royalty Acquisition demonstrates Topaz's strategy of generating free cash flow growth 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 4% gross overriding royalty interest on predominantly crude oil production on approximately 45,000 acres of developed and undeveloped lands in the greater\n \n Clearwater\n \n area of\n \n Alberta\n \n (\"Clearwater\"). In addition, Tamarack will provide a three year capital development commitment.  Topaz will fund the Royalty Acquisition from its available cash on hand.\n \n \n Current production from the Royalty Acquisition lands is approximately 550 bbl/d which includes 500 bbl/d of Nipisi Slave Point, low decline light to medium crude oil which is currently under waterflood.  In addition, there are two\n \n Clearwater\n \n crude oil wells currently being brought on production and one well being drilled. The Royalty Acquisition is expected to close on or before\n \n March 31, 2021\n \n unless amended by mutual agreement of the parties, subject to entering into definitive agreements and satisfaction of customary closing conditions including Tamarack completing the acquisitions it announced on\n \n March 5, 2021\n \n .\n \n \n \n Strategic Rationale\n \n \n \n The\n \n Clearwater\n \n ranks amongst the strongest and fastest growing oil plays in the WCSB and is characterized by ...