Business
Topaz Energy Corp. Announces the Acquisition of Reserve Royalty and Provides Update to Previously Announced Charlie Lake Royalty Acquisition
Topaz Energy Corp. Announces the Acquisition of Reserve Royalty and Provides Update to Pr...
About this update from Topaz Energy Corp
[{"type":"text","content":"\n \n \n \n Topaz Energy Corp. Announces the Acquisition of Reserve Royalty and Provides Update to Previously Announced Charlie Lake Royalty Acquisition\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 May 3, 2021\n \n /CNW/ - Topaz Energy Corp. (TSX: TPZ) (\"Topaz\" or the \"Company\") is pleased to announce that it has entered into a definitive agreement with Reserve Royalty Income Trust (\"Reserve Royalty\") for the purchase of its subsidiaries which hold all of the Reserve Royalty assets, for approximately\n \n $26.0 million\n \n , payable through the issuance of 1,794,886 Topaz shares (the \"Reserve Royalty Acquisition\").\n \n \n \n \n \n \n \n \n \n \n Reserve Royalty Acquisition\n \n \n \n The Reserve Royalty Acquisition adds a large royalty portfolio consisting of 345,000 gross acres of developed and undeveloped fee mineral title and royalty interest lands diversified across\n \n Western Canada\n \n , providing high margin, low decline royalty assets and free cash flow growth for Topaz.  Reserve Royalty has aggregate corporate tax pools of approximately\n \n $100 million\n \n and no debt.  The Reserve Royalty Acquisition assets generated average royalty production and royalty production revenue of 609 boe/d (141 bbl/d crude oil, 2.2 mmcf/d conventional natural gas and 103 bbl/d natural gas liquids) and\n \n $1.6 million\n \n , respectively, during the first quarter of 2021 (\n \n $6.4 million\n \n royalty production revenue on an annualized basis).  Recent drilling activity on the Reserve Royalty lands includes two liquids-rich\n \n Falher\n \n natural gas wells in the Ferrier area which began producing in January 2021.  Average gross production in\n \n February 2021\n \n from the two wells was approximately 14,000 mcf/d (raw) conventional natural gas in addition to natural gas liquids (free condensate) production.\n \n \n \n Charlie Lake Royalty Acquisition Update\n \n \n \n Topaz is also pleased to announce that it has entered into a definitive agreement with Tamarack Valle...