Freehold Royalties Ltd. Announces Closing of Midland U.S. Royalty Transaction
Tuesday, October 5, 2021, 11:02 a.m. MDT
CALGARY, Alberta, Oct. 05, 2021 (GLOBE NEWSWIRE) – Freehold Royalties Ltd. (Freehold) (TSX: FRU) Announces Completion of Previously Announced Transaction to Acquire Concentrated, High Quality US Royalty Assets for US $ 54 Million ($ 68 Million) (Midland Assets) from OneMap Mineral Services LLC. Midland’s assets, together with the targeted acquisition work completed since the start of the year, are expected to play a key role in strengthening the resilience of Freehold’s North American royalty portfolio, improving sustainability in the short and long term. long term of the Freehold dividend, over several years. growth in production and financial flows.
Production volumes from Midland’s assets are expected to increase by around 25% on a compound annual growth rate from 2021 to 2024, with around 50% of near-term development relying on drilled and incomplete locations and permits. Midland assets’ production in 2022 is expected to be around 575 boe / d.
As previously announced, after giving effect to the Midland assets, Freehold forecasts a 2022 production forecast range of 13,500 to 14,500 boe / d (about 8% heavy oil, 40% light and medium oil, 12% natural gas liquids and 40% natural petroleum). gas), with the midpoint representing a 26% increase over Q2-2021 average production volumes.
Freehold’s common stock trades on the Toronto Stock Exchange in Canada under the symbol FRU.
This press release sets out our assessment of Freehold’s future plans and activities as at October 5, 2021 and contains forward-looking information, including, without limitation, forward-looking information regarding Freehold’s expectations that Midland’s assets are expected to play a role. key role in strengthening the resilience of Freehold’s North American royalty portfolio, improving the short- and long-term sustainability of the Freehold dividend, through several years of growth in production and financial flows; the expected 2022 production of Midland’s assets, including expected commodity weights; the expectation of continued growth in production from Midland’s assets over the next several years; the expectation that short-term development on Midland’s assets will be supported by drilled and unfinished locations and permits; and Freehold’s average royalty production forecast for 2022.
This forward-looking information is provided to provide readers with a better understanding of our business and outlook and may not be suitable for other purposes. By its nature, forward-looking information is subject to many risks and uncertainties, some of which are beyond our control, including the impact of the COVID-19 pandemic on economic activity and demand for oil and natural gas. , general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, royalties, environmental risks, taxation, regulations, changes in tax or other legislation, competition from other industry players, lack of availability of qualified personnel or management, stock market volatility, our ability to access sufficient capital from internal and external sources and other risks associated with Freehold’s business, as further described in detail in Freehold’s annual information form for the year ended December 31, 2020, which is available under Freehold’s profile on r SEDAR at www.sedar. com.
With respect to the forward-looking information contained in this press release, we have made assumptions regarding, among other things: future prices of oil and natural gas; future exchange rates; that unfinished drilled wells will be completed in the short term and brought into production; that wells associated with the Midland assets that have been authorized will be drilled and completed within a customary time frame; expectations for additional wells that will be licensed, drilled, completed and brought into production in 2021 and 2022 based on Freehold’s review of the geology and economics of the areas in which Freehold has an interest; expected production performance of the wells to be drilled and / or brought into production in 2021 and 2022; the ability of our royalty payers to obtain materials in a timely manner to complete development activities; the ability and willingness of royalty payers to finance development activities; and other assumptions as identified herein. You are cautioned that the assumptions used in the preparation of this information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, one should not place undue reliance on forward-looking information. We cannot guarantee that any of the anticipated events will or will occur, or if any of them will occur, what benefit we will derive from them.
The forward-looking information contained in this document is expressly qualified by this cautionary statement. Our policy to update forward-looking statements is to update our key operating assumptions on a quarterly basis and, except as required by law, we do not undertake to update any other forward-looking statements.
For more information, contact:Freehold Royalties Ltd. Matt Donohue Manager, Investor Relations & Capital Marketst. 403.221.0833f. 403.221.0888tf. 1.888.257.1873rd. [email protected] w. www.freeholdroyalties.com