Source Rock Royalties Ltd. (“Source Rock”) (TSXV: SRR,OTC:SRRRF), a pure-play oil and gas royalty company with an established portfolio of oil-focused royalties, announces the joint acquisition of additional oil sands and petroleum and natural gas (“PNG”) leases in Alberta.
As previously announced, Source Rock has entered into a joint acquisition agreement with a privately held company (“JV Co”) under which the parties will jointly lease Crown’s mineral rights for the purpose of subcontracting the right to develop such leases in exchange for a royalty interest (the “Leasing JV”). The primary focus of the Leasing JV is to acquire prospective mineral rights for several heavy oil areas within the Mannville Stack that have the potential to be exploited using multilateral drilling technologies. All leases will be 50% owned by Source Rock. The director of JV Co is a professional geologist with 25 years of prospecting experience in the Western Canadian Sedimentary Basin.
Under the Leasing JV, the parties have now leased 31 sections (19,840 acres) of Crown’s mineral rights in Alberta. The mineral rights leased to date consist of 15 sections (9,600 acres) of 15-year oil sands leases and 16 sections (10,240 acres) of 5-year PNG leases.
The parties will continue to evaluate, post for leasing and bid for additional leases for Crown minerals. The Leasing JV aims to establish an undeveloped land base that provides exposure to both near-term drilling potential in areas already being developed by high-quality operators, and longer-term upside options through low-cost, early-stage access to less developed areas.
About Source Rock Royalties Ltd.
Source Rock is a pure-play oil and gas royalty company with an existing oil-focused portfolio of royalty interests concentrated in the Southeast Saskatchewancentrally Alberta and west-central Saskatchewan. Source Rock pursues a balanced growth and return business model, using funds from operations to pursue profitable royalty acquisitions and pay dividends. Leveraging its niche industry relationships, Source Rock identifies and acquires both existing royalty interests and newly created royalties through collaboration with industry partners. Source Rock’s strategy is based on maintaining a low-cost business structure and achieving a sustainable and scalable business as measured by growth in funds per share and maintaining a strong net back on royalty production.
Forward-Looking Statements
This press release contains 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”, “expects”, “expects”, “scheduled”, “intends”, “contemplates”, “anticipates”, “believes”, “proposes” or variations (including negative and grammatical variations) of such words and phrases, or states that certain actions, events or results “may”, “might”, “could”, “could” or “will” are undertaken, take place or are achieved. Forward-looking statements in this press release include statements regarding Source Rock’s dividend strategy and the amount and timing of future dividends (and the sustainability thereof), expectations regarding commodity prices, Source Rock’s growth strategy and expectations regarding future royalty acquisition and partnership opportunities, the ability to complete such acquisitions and establish such partnerships, Source Rock’s intention to pursue additional Crown land leases under the Leasing JV, the ability of the Leasing JV to enter into farm-out transactions for the development of the land leases on acceptable terms. to Source Rock or not at all, and the potential for future drilling on Source Rock’s royalty lands, including pursuant to such farm-out transactions. Such statements and information are based on the current expectations of Source Rock management and are based on assumptions and are subject to risks and uncertainties. Although Source Rock 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 press release may not occur on 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 TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy of this release.
SOURCE Source Rock Royalties Ltd.
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