SOURCE ROCK ROYALTIES ANNOUNCES RECORD ANNUAL ROYALTY PRODUCTION & REVENUE
/Not for distribution to
Unaudited(1) annual results for fiscal 2023 were:
-
Royalty Production - 208 boe/d (93% oil & NGLs)
- Royalty Revenue - $6.6 million
In addition, for fiscal 2023 Source Rock also benefited from 12 boe/d (100% oil & NGLs) of production from newly acquired assets, and approximately
Unaudited(1) results for Q4 2023 were:
-
Royalty Production - 218 boe/d (94% oil & NGLs)
-
Royalty Revenue -
$1.7 million
In addition, for Q4 2023 Source Rock also benefited from 29 boe/d (100% oil & NGLs) of production from newly acquired assets, and approximately 0.2 million of royalty revenue relating to such production, which was accounted for as a purchase price adjustment.
Royalty production averaged 243 boe/d (95% oil & NGLs) in
Audited Annual and Q4 2023 Financial Statements and Management Discussion and Analysis, as well as oil and gas reserves information as of
President's Message
2023 was a transformational year for Source Rock. We followed-up on our
Despite the growth achieved, our corporate cost structure did not increase materially, and our acquisitions plus the consistent drilling activity on our royalty lands led to strong financial results. This financial strength allowed us to transition to a monthly dividend and increase the dividend by 10% in
Given the robust rates of return being achieved by certain operators on our oil focused royalty lands, we expect consistent drilling activity in 2024 on our newly acquired
Source Rock's working capital as of
Recap of Acquisitions & Updates
-
Purchase price:
$8,000,000
-
Royalty lands:
60,800 acres (95 sections) of largely contiguous
Clearwater lands inCentral Alberta -
Royalty rate:
1.5% gross overriding royalty ("GORR") until cumulative royalty revenue received by Source Rock equals the purchase price, at which time the royalty rate reduces to 1.0%
-
Initial royalty production:
~40 bbl/d (100% heavy oil)
-
Drill commitment:
59 horizontal wells prior to
June 30, 2026 (3 wells satisfied)
S.E.
-
Purchase price:
$3,300,000
-
Royalty lands:
5,800 acres (9 sections) of land producing from the
Frobisher formation -
Royalty rate: 2% GORR & varying fee title mineral interests in 320 gross acres of land
-
Initial royalty production:
~10 bbl/d (100% light oil)
-
Drill commitment
: 12 horizontal wells prior to
May 31, 2025 (fully satisfied inJanuary 2024 )
-
Purchase price:
$1,600,000
-
Royalty lands:
15,000 acres (23 sections) of land in
Central Alberta -
Royalty rate: 5% GORR
-
Initial royalty production:
~20 bbl/d (100% light oil)
-
Capital commitment:
$3.2 million prior to
December 31, 2024
S.E.
-
Purchase price:
$3,500,000
-
Royalty lands:
6,400 acres (10 sections) of land producing from the
Frobisher formation -
Royalty rate: 2% GORR
-
Initial royalty production:
~10 bbl/d (100% light oil)
-
Drill commitment:
15 horizontal wells prior to
December 31, 2024 (fully satisfied inSeptember 2023 )
Source Rock is a pure-play oil and gas royalty company with an existing portfolio of oil royalty interests concentrated in southeast
(1) Unaudited Information:
All financial information contained in this news release for the year ended and fourth quarter of |
This news release includes forward-looking statements and forward-looking information within the meaning of Canadian securities laws. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "is expected", "expects", "scheduled", "intends", "contemplates", "anticipates", "believes", "proposes" or variations (including negative and grammatical variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements in this news release include statements regarding Source Rock's dividend strategy and the amount and timing of future dividends (and the sustainability thereof), the potential for future drilling on Source Rock's royalty lands, expectations regarding commodity prices, Source Rock's growth strategy and expectations with respect to future royalty acquisition and partnership opportunities, the ability to complete such acquisitions and establish such partnerships, and the estimated costs for Source Rock to run its business. Such statements and information are based on the current expectations of Source Rock's management and are based on assumptions and subject to risks and uncertainties. Although Source Rock's management believes that the assumptions underlying these statements and information are reasonable, they may prove to be incorrect. The forward-looking events and circumstances discussed in this news release may not occur by certain dates or at all and could differ materially as a result of known and unknown risk factors and uncertainties affecting Source Rock. Although Source Rock has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements and information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement or information can be guaranteed. Except as required by applicable securities laws, forward-looking statements and information speak only as of the date on which they are made and Source Rock undertakes no obligation to publicly update or revise any forward-looking statement or information, whether as a result of new information, future events or otherwise.
Neither the
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